Common Proficiency Test (CPT) Frequently Asked Questions

1. What is the Common Proficiency Test? It is an entry level test for Chartered Accountancy Course. It is a test of four subjects i.e. Accounting, Mercantile Laws, General Economics and Quantitative Aptitude. This test is of 200 marks. This test is divided into two sessions of two hours each (9.00 11.00 a.m. and 12.30 - 2.30 p.m.). CPT is an objective type test with negative marking. 2. Who can join the course? A student who has passed the 10th standard examination conducted by an examining body constituted by law in India or an examination recognized by the Central Government as equivalent thereto may register for Common Proficiency Test. 3. How to apply for admission to the CPT Course?
A student is required to apply in the prescribed form.

A student may buy Prospectus remitting Rs.100. The application form is available in the Prospectus.
Alternatively, the application form can be downloaded from our website as per the link below: http://www.icai.org/post.html?post_id=721&c_id=120 While submitting the filled-in application form, a student has to remit Rs.100 for Prospectus along with registration and tuition fee.

The Prospectus can also be procured by post from any of the offices of the Institute stated in Point 5 below on payment of Rs.140 (Rs.40 on account of postal charge). 4. What is the fees for registration? The registration and tuition fee is Rs.3500, which is to be remitted along with filled in application form. In case a student submits downloaded application form, he should remit Rs.3600 (Rs.100 for Prospectus. A copy of the Prospectus will be sent to him along with the study package). This fee structure is applicable for (i) Indian students residing in India and other SAARC Countries and Bhutan; and (ii) students belonging to other SAARC countries and Bhutan. The following students have to pay fees amounting to US$ 200: (i) (ii) 5. Students of foreign countries other than SAARC countries and Bhutan; and Indian Students residing abroad other than SAARC countries and Bhutan.

Where to submit/dispatch filled-in application form? The application form can be obtained and / or submitted to the following Offices of the Institute in consonance with the address of the student as stated below: STUDENTS BELONGING TO Gujarat, Maharashtra, Goa and Union Territories of Daman & Diu and Dadra & Nagar Haveli DESPATCH ADDRESS Western India Regional Council of The Institute of Chartered Accountants of India, ICAI BHAWANAnveshak 27 Cuffe Parade, Colaba, Mumbai - 400 005,

of Daman & Diu and Dadra & Nagar Haveli

Andhra Pradesh, Kerala, Karnataka, Tamil Nadu and the Union Territories of Pondicherry and Lakshadweep Islands

of Chartered Accountants of India, ICAI BHAWANAnveshak 27 Cuffe Parade, Colaba, Mumbai - 400 005, Phone:022-39893989, Fax: 022- 39802953, E-mail: [email protected] Southern India Regional Council of The Institute of Chartered Accountants of India, ICAI BHAWAN, 122,M.G. Road, Post Box No. 3314 Nungambakkam, Chennai 600 034, Phone: 044 - 39893989, Fax: 044-30210355, E-mail: [email protected] Eastern India Regional Council of The Institute of Chartered Accountants of India, ICAI BHAWAN, 7, Anandilal Poddar Sarani, (Russell Street) Kolkata 700 071 Phone: 033-39893989, Fax: 033-30211145, E-mail: [email protected]

Assam, Meghalaya, Nagaland, Orissa, West Bengal, Manipur,Tripura, Sikkim, Arunachal Pradesh, Mizoram, Andaman-Nicobar Islands

Uttar Pradesh, Bihar, Madhya Pradesh, Rajasthan, Uttaranchal, Chhatisgarh and Jharkhand

Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab and Union Territory of Chandigarh

Central India Regional Council of The Institute of Chartered Accountants of India ICAI BHAWAN, Post Box No. 314, 16/77B, Civil Lines Kanpur 208 001 Phone: 0512-3989398, Fax: 0512-3011173 E-mail: [email protected] Northern India Regional Council of The Institute of Chartered Accountants of India, ICAI BHAWAN, 52-54, Vishwas Nagar, Delhi 110032, Phone: 011-39893990, Fax: 011-30210680, E-mail: [email protected]

The student should make the draft payable accordingly to Mumbai, Chennai, Kolkata, Kanpur and New Delhi respectively. However, students belonging to the following cities may buy the prospects and submit filled-in application form to the following decentralized offices: Place Ahmedabad Decentralized Offices Ahmedabad Branch of the Western India Regional Council of the ICAI, 123, Sardar Patel Colony, Near Usmanpura under Bridge, Naranpura, Ahmedabad 380 014 Ph: 079 27680946, 27680537, Fax: 079 27680537 E-mail: [email protected] Bangalore Branch of the Southern India Regional Council of the ICAI, No. 16 / 0, Millers Tank Bed Area, Bangalore 560 052 Ph: 080 22205891, 22252546, Fax: 080 22252547 E-mail: [email protected]

Bangalore

Baroda

Chandigarh

Coimbatore

Ernakulam

Hyderabad

Indore

Jaipur

Nagpur

Pune

Surat

Baroda Branch of the Western India Regional Council of the ICAI, 2B, Ramkrishna Chambers, Productivity Road, Vadodara 390 005 Ph: 0265 2351151, Fax: 0265 2351151 E-mail: [email protected] Chandigarh Branch of the Northern India Regional Council of the ICAI, Institutional Area, Opp. Community Centre, Sector 35 B, Chandigarh 160 036 Ph: 0172 5067756, Fax: 0172 5067756 Email: [email protected] Coimbatore Branch of the Southern India Regional Council of the ICAI, M.M.S Memorial Building, 8, Diwan Bahadur Road, R.S. Puram, Coimbatore 641 002 Ph: 0422 2552872, Fax: 0422 2547764 Email: [email protected] Ernakulam Branch of the Southern India Regional Council of the ICAI, 57 / 3146, Dewans Road, Ernakulam, Kochi 682 016 Ph: 0484 2369238, 2369258, Fax: 0484 2372953 E-mail: [email protected] Hyderabad Branch of the Southern India Regional Council of the ICAI, 11 5 398 / C, Red Hills, Hyderabad 500 004 Ph: 040 23317026, 23393182, Fax: 040 23393200 E-mail: [email protected] Indore Branch of the Central India Regional Council of the ICAI, 101, Urvashi Complex, Ist floor, 3, Jaora Compound, Indore 452 001 Ph: 0731 2702875, Fax: 0731 2702471 E-mail: [email protected] Jaipur Branch of the Central India Regional Council of the ICAI, D 1, Institutional Area, Jhalana Doongiri, Jaipur 302 004 Ph: 0141 3044200, 3044206, 3044214,Fax: 0141 3044215 E-mail: [email protected] Nagpur Branch of the Western India Regional Council of the ICAI, 20 / 1, Behind Vijayanand Society, Dhantoli, Nagpur 440 012 Ph: 0712 2443968, 2441196, Fax: 0712 2454166 E-mail: [email protected] Pune Branch of the Western India Regional Council of the ICAI, Amber Chambers, 5th Floor, 28 A, Budhwar Peth, Pune 411 002 Ph: 020 24451636, Fax: 020 24489732 E-mail: [email protected] Surat Branch of the Western India Regional Council of the ICAI, 3 A, Jaldarshan Apartment, Opp.Bahumali Building, Nanpura, Surat 395 001 Ph: 0261 2472932, 3207911, Fax: 0261 2464413 E-mail: [email protected] 3

The CPT prospectus along with prescribed forms is also generally available in all branches of the Institute. 6. What are the subjects to be studied? SESSION I (Two Sections Two hours 100 Marks) Section A: Fundamentals of Accounting (60 Marks) Section B: Mercantile Laws (40 Marks) SESSION II (Two Sections Two hours 100 Marks) Section C: General Economics (50 Marks) Section D: Quantitative Aptitude (50 Marks) 7. What is the detailed syllabus? SYLLABUS FOR COMMON PROFICIENCY TEST (CPT) (One paper Four hours 200 Marks) Level of Knowledge: Basic knowledge

SESSION I (Two Sections Two hours 100 Marks) Section A : Fundamentals of Accounting ( 60 Marks ) Objective To develop conceptual understanding of the fundamentals of financial accounting system. Contents 1. Theoretical Framework (i) Meaning and Scope of accounting (ii) Accounting Concepts, Principles and Conventions (iii) Accounting Standards concepts, objectives, benefits (iv) Accounting Policies (v) Accounting as a measurement discipline valuation principles, accounting estimates 2. Accounting Process Books of Accounts leading to the preparation of Trial Balance, Capital and revenue expenditures, Capital and revenue receipts, Contingent assets and contingent liabilities, Fundamental errors including rectifications thereof. 3. 4. Bank Reconciliation Statement Inventories

Basis of inventory valuation and record keeping. 5. Depreciation accounting Methods, computation and accounting treatment of depreciation, Change in depreciation methods. 6. 7. Preparation of Final Accounts for Sole Proprietors Accounting for Special Transactions (a) Consignments (b) Joint Ventures (c) Bills of exchange and promissory notes (d) Sale of goods on approval or return basis. 8. Partnership Accounts Final accounts of partnership firms Basic concepts of admission, retirement and death of a partner including treatment of goodwill. 9. Introduction to Company Accounts Issue of shares and debentures, forfeiture of shares, re-issue of forfeited shares, redemption of preference shares.

Section B : Mercantile Laws ( 40 Marks ) Objective To test the general comprehension of elements of mercantile law Contents 1. The Indian Contract Act , 1872: An overview of Sections 1 to 75 covering the general nature of contract , consideration , other essential elements of a valid contract , performance of contract and breach of contract. The Sale of Goods Act, 1930: Formation of the contract of sale Conditions and Warranties Transfer of ownership and delivery of goods Unpaid seller and his rights. The India Partnership Act, 1932: General Nature of Partnership Rights and duties of partners Registration and dissolution of a firm. SESSION II (Two Sections Two hours 100 Marks) Section C : General Economics ( 50 Marks ) Objective To ensure basic understanding of economic systems, economic behaviour of individuals and organizations. Contents (I) Micro Economics 1. Introduction to Micro Economics (a) Definition, scope and nature of Economics (b) Methods of economic study (c) Central problems of an economy and Production possibilities curve. 2. Theory of Demand and Supply (a) Meaning and determinants of demand, Law of demand and Elasticity of demand Price, income and cross elasticity (b) Theory of consumer s behaviour Marshallian approach and Indifference curve approach (c) Meaning and determinants of supply, Law of supply and Elasticity of supply. 3. Theory of Production and Cost (a) Meaning and Factors of production (b) Laws of Production The Law of variable proportions and Laws of returns to scale (c) Concepts of Costs Short-run and long-run costs, Average and marginal costs, Total, fixed and variable costs.

2. 3.

4.

Price Determination in Different Markets (a) Various forms of markets Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly (b) Price determination in these markets.

(II) Indian Economic Development 5. Indian Economy A Profile (a) Nature of the Indian Economy (b) Role of different sectors Agriculture, Industry and Services in the development of the Indian economy, their problems and growth (c) National Income of India Concepts of national income, Different methods of measuring national income, Growth of national income and per capita income in various plans. (d) Basic understanding of tax system of India Direct and Indirect Taxation 6. Select Aspects of Indian Economy (a) Population Its size, rate of growth and its implication for growth (b) Poverty Absolute and relative poverty and main programs for poverty alleviation (c) Unemployment Types, causes and incidence of unemployment (d) Infrastructure Energy, Transportation, Communication, Health and Education (e) Inflation (f) Budget and Fiscal deficits (g) Balance of payments (h) External debts. 7. Economic Reforms in India (a) Features of economic reforms since 1991 (b) Liberalisation, Privatisation and Disinvestment (c) Globalisation. 8. Money and Banking (a) Money Meaning and functions (b) Commercial Banks Role and functions (c) Reserve Bank of India Role and functions, Monetary policy. Section D : Quantitative Aptitude ( 50 Marks ) Objective To test the grasp of elementary concepts in Mathematics and Statistics and application of the same as useful quantitative tools.

Contents 1. 2. Ratio and proportion, Indices, Logarithms Equations Linear simultaneous linear equations up to three variables, quadratic and cubic equations in one variable, equations of a straight line, intersection of straight lines, graphical solution to linear equations. 3. 4. 5. 6. 7. 8. 9. Inequalities Graphs of inequalities in two variables common region. Simple and Compound Interest including annuity Applications Basic concepts of Permutations and Combinations Sequence and Series Arithmetic and geometric progressions Sets, Functions and Relations Limits and Continuity Intuitive Approach Basic concepts of Differential and Integral Calculus (excluding trigonometric functions) (a) Textual, Tabular & Diagrammatic representation of data. (b) Frequency Distribution. (c) Graphical representation of frequency distribution Histogram, Frequency Polygon, Ogive 11. Measures of Central Tendency and Dispersion Arithmetic Mean, Median Partition Values, Mode, Geometric Mean and Harmonic, Mean, Standard deviation, Quartile deviation 12. Correlation and Regression 13. Probability and Expected Value by Mathematical Expectation 14. Theoretical Distributions Binomial, Poisson and Normal. 15. Sampling Theory Basic Principles of sampling theory , Comparison between sample survey and complete enumeration , Errors in sample survey , Some important terms associated with sampling , Types of sampling , Theory of estimation , Determination of sample size . 16. Index Numbers

10. Statistical description of data

8.

Will there be any study package? Yes. The Board of Studies provides a comprehensive study package including a large question bank. The Board of Studies also provides a CD for self-assessment. Using the CD, a student can get question paper sets of different subjects and test his level of preparation. In addition, Volume I & II of the Model Test Papers are also being supplied to the students with study materials.

9.

Shall I get the study materials on the same day on which the application form is submitted? Normally, students belonging to Mumbai, Chennai, Kolkata, Kanpur, New Delhi, Ahmedabad, Bangalore, Baroda, Chandigarh, Coimbatore, Ernakulam, Hyderabad, Indore, Jaipur, Nagpur, Pune, and Surat are provided study materials on submission of the application form in respective Office of the Institute. Study materials are to be collected in person. For outstation students, study materials are sent by post through decentralized offices which takes normal postal delivery time to reach the students. In addition, various other branches of the Institute also collect filled-in application form and distribute study materials. Presently students can collect study materials from the following Branches: Sl.No. City 1. Ahmednagar Branches Ahmednagar Branch of WIRC of the ICAI 2ND Floor, Mutha Chambers (Old Vasant Talkies) Market Yard Road Ahmednagar 414001 Bangalore Branch of SIRC of the ICAI ICAI Bhawan No.16/0, Millers Tank Bed Area Bangalore-560 052 Ernakulam Branch of SIRC of the Institute of Chartered Accountants of India 57/3146, Dewans Road, Ernakulam, Kochi - 682 016 Ghaziabad Branch of CIRC of the ICAI Yamunotri Complex, 2nd Floor, A-12, Ambedkar Road, Ghaziabad 201001 Gorakhpur Branch of CIRC of The Institute of Chartered Accountants of India, 205, Sunanda Towers, 2nd floor, Bank Road, Gorakhpur 273 001 Gwalior Branch of CIRC of the ICAI, F-104, Global Apartment, Opp. Income-Tax Office, City Centre, Gwalior 474001 Hyderabad Branch of SIRC of the Institute of Chartered Accountants of India 11-5-398/C, Red Hills, Hyderabad 500 004 9

2.

Bangalore

3.

Ernakulam

4.

Ghaziabad

5.

Gorakhpur

6.

Gwalior

7.

Hyderabad

Hyderabad 500 004 8. Jaipur The Chairman, Jaipur Branch of CIRC of the Institute of Chartered Accountants of India D-1, Institutional Area, Jhalana Doongri, Jaipur - 302004 The Chairman, Jamnagar Branch of WIRC of The Institute of Chartered India, 531, 5th floor, Indraprasth Market, Pancheshwar Tower Road, Jamnagar 361 001

9.

Jamnagar

Accountants of

10.

Kota

Kota Branch of CIRC of the ICAI Op. Maha Laxmi Apartment, 1st Floor 13, Behind Gumanpura Police Station Jhalawar Road, Kota 324007 Nagpur Branch of WIRC of the ICAI, ICAI Bhawan, 20/1, Dhantoli, Nagpur-440 012 Ranchi Branch of CIRC of the Institute of Chartered Accountants of India Vyapar Bhawan, 3rd Floor, Lalji Hirji Road, Ranchi - 834 001 Saharanpur Branch of CIRC of the ICAI, 4/313, Boomanji Road, Above Central Bank of India, Near Pul Jogiyan Saharanpur 247001 Tiruchirapalli Branch of SIRC of the ICAI, G-1, Green House Apartments, 28, Mc Donalds Road, Cantonment, Tiruchirapalli-620 001 Tirunelveli Branch of SIRC of the Institute of Chartered Accountants of India, 65, 2 nd floor, Kailasapuram, North Street, Tirunelveli - 627 001 Yamunanagar Branch of NIRC of the ICAI, SCO-1, 1st Floor, Madhu Colony, Near Madhu Banquet Hall, Yamunanagar-135 001

11. 12.

Nagpur Ranchi

13.

Saharanpur

14.

Tiruchirapalli

15.

Tirunelveli

16.

Yamunanagar

10. Is the Institute organising any oral coaching to assist the students for preparation?

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Yes. There are accredited institutions who are engaged in conducting oral coaching classes. A list of such institutions is available on the website as per the following links: http://icai.org/icairoot/students/new_scheme/accreditation.pdf 11. What are the different types of modules for oral coaching available? The different coaching modules are designed for conducting oral coaching: Module I Crash Course Module Module II Regular Course Module Crash Course comprising of 50 days Regular Course comprising of 80 days 4 hours per day 3 hours per day Total teaching hours 200 Total teaching hours: 240

A student has to contact the Principal / Chief Co-ordinator of the accredited institution for admission to oral coaching classes and ascertain the type of modules available. 12. What is the fees to be paid for undergoing oral coaching? Fees to be charged for different modules are decided by the accredited institutions. 13. What is the eligibility for appearing in the examination? A registered student may appear in Common Proficiency Test after he has appeared in the Senior Secondary Examination (10+2 examination) conducted by an examining body constituted by law in India or an examination recognised by the Central Government as equivalent thereto and has complied with such requirements as may be specified by the Council from time to time. 14. How to make application for appearing in the examination? A student has to follow the examination notification to be issued by the Examination Department of the ICAI and apply in the prescribed form along with the examination fee of Rs.400(inclusive cost of application form & exam fee). The Examination Department will announce the examination centres and issue admit card. 15. What are the qualifying marks? The qualifying mark is 50%. A student has to remember that CPT is an objective type test with a negative marking for selecting wrong option which will be indicated in the question paper. 16. When the CPT Exam are held? CPT examination is being held twice in a year i.e., in June & December. 17. What is the next step after passing CPT? After passing CPT and 10+2 examination conducted by an examining body constituted by law in India or an examination recognized by the Central Government as equivalent thereto, a student may join the Chartered Accountancy Course. Education of Chartered Accountancy is divided into two levels: Professional Competence Course Final Course There is a concurrent articled training of 3 years or equivalent audit training. Eight months of service as an audit assistant shall be reckoned as six months of articled training. Also, a student is allowed to

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undergo partly articled training and partly audit training. Any fraction of a period less than eight months as audit assistant will be ignored. After passing CPT and 10+2 standard examination as stated above, a student has to take admission to Professional Competence Course and concurrently register for articled/audit training. A student is advised to follow FAQs for Professional Competence Course. These are available on our website www.icai.org. 18. Where to submit filled-up examination form by hand? 19. Where and how to send filled up examination form by post? (i) Reception Counter, Annexe Building, The Institute of Chartered Accountants of India, ICAI Bhawan, Indraprastha Marg, New Delhi 110 002. (Ph. 011 39893989) (ii) Reception Counter, Northern Regional Office, The Institute of Chartered Accountants of India, 52 54, Institutional Area, Vishwas Nagar, Shahdara, Near Karkardooma Court Complex, Delhi 110 032.(Ph. 011 39893990) (iii) Reception Counter, The Institute of Chartered Accountants of India, ICAI Bhawan, 27, Cuffe Parade, Colaba, Mumbai 400 005. (Ph. 022 39893989) (iv) Reception Counter, The Institute of Chartered Accountants of India, ICAI Bhawan, 122, Mahatama Gandhi Road, Nungambakkam, Chennai 600 034. (Ph. 044 39893989) (v) Reception Counter, The Institute of Chartered Accountants of India, ICAI Bhawan, 7, Anandilal Poddar Sarani (Russell Street), Kolkata 700 071. (Ph. 033 39893989) (vi) Reception Counter, The Institute of Chartered Accountants of India, ICAI Bhawan, 16 / 77 B, Civil Lines (Behind Reserve Bank of India), Kanpur 208 001. (Ph. 0512 3989398) (vii) Reception Counter, Ahmedabad Branch of WIRC of The Institute of Chartered Accountants of India, ICAI Bhawan, 123, Sardar Patel Colony, Navjivan, P.O. Naranpura, Stadium Road, Ahmedabad 380 014. (Ph. 079 27680946, 27680537) (viii) Reception Counter, Bangalore Branch of SIRC of The Institute of Chartered Accountants of India, ICAI Bhawan, No.16 / 0, Millers Tank Bed Area, Bangalore 560 002. (Ph. 080 22205891, 22252546, 22257109) (ix) Reception Counter, Hyderabad Branch of the Southern Indian Regional Council of the ICAI, 11-5398/C, Red Hills, Hyderabad-500 004 (Ph. 040-23317026, 23393182) (x) Reception Counter, Jaipur Branch of the Central Indian Regional Council of the ICAI, D-1, Institutional Area, Jhalana Doongiri, Jaipur-302 004 (Ph. 0141-3044200, 3044206, 3044214) (xi) Reception Counter, Pune Branch of WIRC of The Institute of Chartered Accountants of India, ICAI Bhawan, 28 A, Amber Chamber, 5th Floor, Appa Balwant Chowk, Budhwar Peth, Pune 411 002. (Ph. 020 24451636)

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Ensure that you fill up the OMR form strictly as per instructions and send in the special envelope provided in the Information Brochure to the following address By Registered / Speed Post so as to reach on or before 1730 hours of specified last date: The Sr. Joint Secretary (Exams) The Institute of Chartered Accountants of India ICAI Bhawan, Indraprastha Marg New Delhi 110 002 Candidates are advised not to send their filled up form through private courier services. No responsibility for late / non delivery will be taken. 20. Can a student registered for CPT can appear in CPT exam indefinitely? No, the registration for CPT Course will be valid for a period of 3 years from the date the student becomes eligible to appear in CPT exam for the first time or for the period so long the student continues to appear in the examination regularly whichever is later. Accordingly the registration of a student will continue to be valid as long as the student continues to appear in the CPT exam irrespective of the period involved which may be beyond three years. After expiry of the period of 3 years from the date the student became eligible to appear in CPT for the first time, his registration will lapse. However, the registration shall not lapse if such student has appeared in at least one of the last two examinations conducted just before the end of three years. The registration of such student shall however lapse in case he subsequently does not appear in two consecutive examinations. 21. How much amount a student of CPT, whose registration is lapsed is required to pay? A student whose registration gets lapsed will be eligible for re-registration. Such students will be required to re-register himself/herself by paying a nominal revalidation fee of Rs.500/-. Such re-registration will again be valid for a period of 3 years or for the period so long the student continues to appear in the examination regularly. After the expiry of 3 years from the date of re-registration, the reregistration will again lapse. However the re- registration shall not lapse if such student has appeared in at least one of the last two examinations conducted just before the end of three years. The registration of such student shall however lapse in case he subsequently does not appear in two consecutive examinations. Such student will again be eligible to revalidate his/her registration by re-registering himself/herself and paying the aforesaid revalidation fee of Rs.500/-. There is no time limit for revalidation. 22. How much amount a student of Professional Education (Course-I) who have exhausted all the attempts is required to pay for switching over to Common Proficiency Test (CPT) course All the students who have exhausted all the attempts will have to register afresh by paying full registration fees for CPT, i.e., Rs.3500/- applicable at present. In case a student of PE-I has not exhausted all the attempts, the students may be permitted to convert into CPT by paying Rs.100 towards the cost of prospectus and such students will be issued the study material of CPT free of cost.. 13

23. Whether there is any specific date by which revalidation should be done? Revalidation can be done at any time before the due date of filling of examination forms.

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