CA articleship is a mandatory part of the CA curriculum, where every student has to complete 3 years of practical training working on real assignments.
Articleship training starts after declaration of IPCC and CA intermediate result; students work with a practising chartered accountant, adhering to some clauses enforced by the Institute of Chartered Accountants of India.
The primary goal of articleship training is to introduce students to a real work environment in a CA firm and to teach them about professional life.
- Chartered accountant articleship training involves compulsory 100 hours of IT training and 90 hours of the orientation program.
Students appearing for CA articleship
There are primarily two types of candidates who can appear or chartered accountancy course –
- Those who have qualified the entrance tests, like CA Foundation or CA CPT.
- Those who were eligible to enrol for CA intermediate directly.
The former can continue with their articleship training after qualifying for CA Intermediate, while the latter has to complete nine months of practical work in association with any CA firm before sitting for the intermediate exams. This regimen of articleship teaches the qualities that an ideal accountant must have and is an essential part of the course.
Aspiring students appearing for chartered accountant articleship have to follow some certain regulation, including rules regarding a transfer, working hours, registration, etc.
Take a look at some of the rules and regulations that student should know before going for articleship training –
Regulations regarding articleship training
- Working hours –
The Institute of Chartered Accountants of India has issued several guidelines in of the working hours of articled assistants.
These are –
- Assistants are obligated to work 35 hours in a week (excluding lunch breaks). However, the principal can allocate extra work to the articled assistant (not exceeding 45 hours in a week) under certain circumstances. In this case, the assistant will earn leaves to compensate for the extra working hours.
- This regulation has been implemented to ensure that students understand what 21st-century articleship wants from CAs. Moreover, they are rewarded with leaves for the duration of the extra work as additional compensation.
- The office hours should not start before 11 AM and must conclude within 7 PM. However, the working hours for articles should end within 5 PM.
- Assistants are not allowed to join any classes or tuition during the hours allocated for work in a CA firm. It includes any graduation courses as well.
- Individuals will have to take prior permission to join courses (including graduation courses) while perusing articleship. In this case, they will have to submit Form No. 112 within one month of joining the college or program.
Any individual violating the above-mentioned guidelines will be excluded from his or her articleship training.
- Transfer rules –
According to ICAI’s guidelines, there are no restrictions if an individual seeks transfer from a particular CA firm during the 1st year of articleship. There is no limit on how many transfers one can seek as well. They only need to submit Form 109 for the transfer of articleship training.
However, certain protocols come into place during the 2nd and 3rd years of training, ensuring students follow these guidelines while seeking transfer from one firm to another.
The distinction in regulation allows CAs to look for the best growth opportunities available for chartered accountants as well as teaches them to familiarise with one particular organisation for the future.
- Registration for articleship training –
There are several guidelines regarding the registration process of articleship training. Apart from the mandatory two years of articleship training under a practising CA, who is employed in a CA firm or is a self-employed individual.
- Aspiring students will have to submit Form 102 and Form 103, also known as the “Deed of Articles” and “Statement of Particular of Article Assistant”, respectively and submit it to the regional branch of ICAI.
- An applicant will have to submit the attested copy of IPCC mark sheet, secondary and higher secondary certificate, and OP completion certificate along with Form 103. All these documents, including Form 102 and 103, should reach ICAI within 30 days of the commencement of training. Otherwise, students will be liable to pay a late fee to the institution.
The above-mentioned rules and regulations affected the duration of articleship training help teach the essentials to prospective chartered accountants.
Such training significantly helps individual during their professional life, whether they want to work as a salaried individual or are likely to follow a step-by-step guide to start a new CA firm.
A substantial number of CA graduates prefer to start their own CA firm. With a restructured set of regulations and easy availability of credits like a loan for chartered accountants, it has become much easier for new graduates to fund the necessary expenses to start their own chartered accountancy firm.
There are several financial institutions that offer such credits to eligible applicants. These include both private and public sector lenders, along with non-banking financial institutions like Bajaj Finserv.
By referring to these guidelines, candidates for CA articleship will have a much better knowledge of the program. They will also be able to select the ideal firm they wish to complete their articleship from.