An important phenomenon of recent times is the rapid growth of the accountancy profession. The vast changes occurring in the economy of the country have been placing great responsibilities on the Chartered Accountants. It also constitutes a challenge to the profession to bring to bear their knowledge and skill in their specialised fields of activity. The types of functions generally performed by the Chartered Accountant are varied. The more important ones amongst them are discussed below.

This includes the writing up of accounts and the preparation of financial statements. It encompasses a wide area ranging from simple Book keeping to complex financial analysis.

Possibly one of the most important functions of a Chartered Accountant, it is here that his specialised training, skill and judgment are most often called into play. The purpose of auditing is to satisfy the users of financial statements that the accounts presented to them are drawn up on correct accounting principles and that they represent a true and fair view of the state of affairs of the organisation.

With a number of taxes on the statute book, current and continuing tax information has become vital to the effective economics of business management. The assessment of taxes is very closely linked with financial accounts. The Chartered Accountant with his experience in accounts is in an advantageous position for preparing the returns for tax purposes, representing assessees before the Income-Tax authorities and rendering general advice on taxes to his clients. An additional responsibility placed on him recently is that his services will be required by the tax department for auditing complicated cases, having large revenue potential. The requirement under the Income-Tax law for compulsory maintenance of accounts by the specified categories of taxpayers would also make a demand on his time and services. Every assessee with a minimum turnover of Rs. 10 lakhs in the case of professionals and Rs. 40 Lakhs in the case of business concerns is compulsorily required to get his accounts audited under the Income-Tax law. This has considerably helped the revenue authorities in making proper assessments.

A Chartered Accountant is also trained to ascertain the costs of production and of processes at different levels of operations in the manufacture of a product and in the rendering of a service. He is also equipped to provide costing information for the guidance of management, introduce cost control methods and assist the management in establishing appropriate selling prices.

The services of Chartered Accountants are frequently sought in connection with matters such as the formation, financial structure and liquidation of limited companies. Secretarial and Registration work and the duties of a Receiver are also undertaken by them, in addition to other company work.

Chartered Accountants are often called upon to carry out investigation to ascertain the financial position of business in connection with matters such as a new issue of share capital, the purchase or sale or financing of a business, reconstruction and amalgamations. Their services are also sought for undertaking investigations with a view to achieving greater efficiency in management or administration, finding out reasons for increases or decreases in profits etc.

A Chartered Accountant is also often appointed executor under a will or trust in order to carry on the administration of the estate or settlements.

Appointment of this nature require the Chartered Accountant to work in Co-operation will solicitors or Lawyers. Conversely, Solicitors or lawyers carrying out works of this kind usually call in Chartered Accountants to assist them in the accounting aspects of their work.

Many members of the Institute who hold senior position in industry and commerce are also directors of their companies. Moreover, many members who are actively carrying on public practice are also directors of companies. The advantages of having a Chartered Accountant on the Board of Directors are now well recognised and the practice of making such appointments has grown rapidly.

In a well organised company or group of companies, the Secretary is a man with a professional qualification (often a Chartered Accountant) who, in addition to his multifarious other duties, is an important link in the management chain. The continued growth of limited companies enables the professional accountants to offer secretarial services to small companies, many of which are being virtually run by a few individuals who are unable to afford a full-time secretary.

This is another field in which the Chartered Accountant is able to render a service which is utilised in a variety of ways like formulation of policies, day to day control, performance evaluation, etc.

The Chartered Accountant undertakes the valuation of shares of public and private companies when amalgamation or re-organisation takes place for the purpose of takeover bids and other acquisitions.

C.As. play invaluable role in assisting business organisations to utilise resources effectively, increase their efficiency and achieving their goals and objectives. as management consultants, C.As. render host of consulting sevices as under:

• Developing management information system.
  
  
• Designing budgetary and control system.
  
  
• Determining measures of the effective utilisation of capital.
  
  
• Installing cost accounting system.
  
  
• Assisting the management in the efficient use of working capital as an aid to improve productivity
  
  
• Advising management on principles of organisation and methods for effective delegation and planning of work.
  
  
• Rendering advice on international taxation matters, foreign collaborations, joint ventures, double taxation agreements etc.,
  
  
• Reviewing procedures and equipment for operational control.
  
  
• Review of financial planning and policies for effective utilisation of resources.
  
  
• Rendering secretarial services and advice on Corporate Law matters.
  
  
• Advising management on amalgamations, reconstructions, takeovers and expansion schemes.
  
  
• Assist in the preparation of feasibility studies of new project and expansion schemes.
  
  
• Advise on the system analysis and design, including selection of hard work and development of software and feasibility of incorporating computer applications for accounting and commercial activities.
  
  
• Assist in finding solutions for specific business problems such as product mix decisions, pricing decisions, making representation to Government on various matters etc.
  
  
• Appraisal of personnel policies and practices.
  
  
• Assist in the selection of executive personnel in the areas of production, marketing, accounts, data processing, personnel, general administration etc.
  
  
• Acting as advisor or consultant to an issue, including such matters as drafting of prospectus and memorandum containing salient features of prospectus, preparation of publicity budget etc.
  
  
• Acting investment counselor in respect of securities.
  
  
• Acting as registrar to an issue and for transfer of shares/other securities.
  
  

Among the many other duties undertaken by a Chartered Accountant, mention may be made of service as an arbitrator for the settling of disputes and those connected with insolvency work, such as the preparation of statements of affairs and the duties of a trustee in bankruptcy or under a deed of arrangement