A Comprehensive Guide to Practising Chartered Accountancy

Chartered Accountancy (CA) stands out as one of the most esteemed and sought-after professional paths in India. It is looked after by the Institute of Chartered Accountants of India (ICAI). Becoming a CA involves a structured process comprising three stages—CPT (Common Proficiency Test), IPCC (Integrated Professional Competence Course), and CA Final. Alongside clearing these exams, students must complete practical training, commonly called articleship.

Articleship represents the initial phase of the CA journey. It furnishes students with valuable insights and skills to apply the theoretical underpinnings acquired during their studies. Articleship offers a firsthand encounter with the accounting and auditing practices prevalent in the field. This piece serves as an extensive resource covering all aspects of CA articleship. CA’s are the professionals with more knowledge about taxation, accounting, audit and other financial topics than us.

Practising or consulting in India has seen a hike. GST poses bigger service and business opportunities for CAs this is because the major taxation revision of the country needs many more companies to furnish the taxes and make sure that they comply with the taxation laws and guidelines.

More and more opportunities for India come from the steady globalization in practice for CAs in areas such as knowledge process outsourcing, IFRS compliance, and forensic accounting. The older prospective areas consist of fiscal reporting, taxation, audit expertise, and insurance advisory.

Before starting practising, you must do your research and find out for yourself whether you take on the point and render the same.

Many questions arise in the minds of the CAs about what to do, how to do it, and many more. So to help you out with all the dilemmas we have brought up an article about the provisions and requirements to set up the chartered accountant firm or chartered accountancy practice in the Country.

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Understanding CA Articleship

CA Articleship denotes the hands-on training undertaken by CA students as part of their educational curriculum. As mandated by ICAI guidelines, students must engage in a minimum of three years of supervised work under a practising Chartered Accountant to qualify as a CA. This training instils technical proficiency, practical experience, and the necessary skills for professional competence.

Throughout articleship, students gain exposure to diverse domains such as accounting, auditing, taxation, finance, management, legal frameworks, and information technology. They learn to translate theoretical concepts into real-world scenarios. Articleship serves as a preparatory phase for the CA Final examination and sets the stage for a prosperous career as a Chartered Accountant.

Objectives of CA Articleship

The core objectives of the articleship are:

• Providing comprehensive practical training to improve students’ knowledge and competencies
• Introducing students to the nuances of professional practices and workplace culture
• Fostering professional qualities like discipline, accountability, and diligence
• Facilitating the integration of theoretical teachings with practical applications
• Offering training across diverse areas including accounting, auditing, taxation, corporate regulations, and more
• Equipping students to address real-world accounting and financial challenges independently
• Preparing students for a rewarding career as autonomous CA professionals.

Articleship Duration:

According to ICAI provisions, the minimum timeline of articleship is 3 years. You have to go through two stages to complete it.

Stage First- A candidate has to complete an articleship of 9 months after clearing CPT and before registering for IPCC.

Stage Second- After clearing Group 1 of IPCC, the candidate has to complete the balance of 21 months (2 years and 3 months).

The candidate has to complete the articleship duration before the final attempt of the CA final. Candidates are also allowed to take a gap of 18 months during articleship because of conditions like completing higher education or medical emergencies.

Where To Complete Articleship?

Undertaking articleship is a requirement under a practising Chartered Accountant. Students have three options for fulfilling this requirement:

1. Joining a Chartered Accountant in Practice (CA firm) – Many students opt to join small, medium, or large CA firms to fulfil their articleship obligations.
2. Working with Companies Employing CAs as Internal Auditors – Some companies hire CA interns to serve as internal auditors.
3. Engaging with Chartered Accountants Employed in Public Sector Undertakings (PSUs) such as national banks, insurance firms, etc.

New Guidelines Set by Institute for Articleship in CA Firms

The institute has established specific guidelines governing where students can pursue articleship, with variations on the grounds of whether the CA firm offers audit services.

Audit Firms:

Students have the option to undertake articleship in CA firms in India that conduct statutory audits or other attestation services. There are no boundaries, a firm can train the number of articles, based on the partner’s number. However, the firm or audit must have one Fellow CA for the articleship to be valid.

Non-Audit Firms:

Firms not engaged in attestation services can also accommodate articles. But, there are limitations on the number of articles as outlined below:

• Partner: Maximum of 5 articles
• Partners: Maximum of 10 articles
• For each additional partner: Maximum of 5 articles

During articleship, students must work under the right training and leadership, with the ICAI continually assessing firms to make sure students receive enough opportunities.

Stipend for Articleship

Article students receive a monthly stipend for their training. The payment depends on the city and firm’s type.

In metropolitan areas and with leading CA firms in Kolkata, students can anticipate stipends ranging from Rs. 15,000–30,000 per month. Stipends are less in smaller towns and firms, typically ranging from Rs. 5,000–15,000 per month.

Stipend amounts are subject to periodic review and adjustment every 6 months to 1 year, following mutual agreement and discussions. Students are suggested to verify the stipend payment before starting the articleship.

Tasks Involved in Articleship:

• Drafting various documents including resolutions, agreements, contracts, certificates, etc.
• Helping in offering business advisory and consultancy services
• Carrying out internal audits and stock audits for clients
• Reviewing revenue statements, bank reconciliation records, etc.
• Handling client correspondence and communication
• Providing bookkeeping and accountancy services to clients
• Reviewing accounts, ledgers, bills, invoices, etc., for accuracy
• Assisting in making budgets, forecasts, and MIS reports for clients
• Drafting audit programs and maintaining audit documentation
• Staying updated on the updated accounting norms, financial statement standards, tax laws, etc.
• Supporting partners in the work and growth of the CA firm
• Taking part in departmental activities and conferences
• Adhering to professional codes of ethics and confidentiality
• Completing an internship report and obtaining attestation for it.

Students have the opportunity to explore a range of tasks that make them prepared for a career as a CA. Carrying out these tasks meticulously is crucial to get most of the articleship.

Guidelines for Articleship: Duties and Responsibilities

To maintain the standards of articleship, ICAI has established specific rules and regulations which include:

• Before commencing articleship, candidates must have successfully cleared CPT and registered for IPCC.
• Articleship can be pursued with a minimum of 9 partners/members of ICAI in practice.
• The principal guiding the articleship must possess a minimum of 5 years of practical experience.
• Throughout the training period, both the article and principal must be based in India.
• Within 30 days of starting articleship, students are required to submit Form 103.
• Students are allowed a maximum of 180 days of leave during articleship due to unforeseen circumstances.
• Students doing post-qualification courses while completing articleship can avail of a 25% attendance relaxation.
• Maintaining registers and records as specified by ICAI is mandatory for students.
• Both the principal and article are required to submit periodic reports to ICAI.
• Students must go through ITT and GMCS/management training as stipulated.
• Articleship should be restricted to one principal in the duration.
• Both the principal and article must adhere to all the guidelines issued by ICAI.

By adhering to these rules, students can ensure they receive comprehensive and valuable learning during their articles.

Termination and Transfer of Articleship:

Under particular conditions, students may need to terminate their current articles and join another principal. The regulations for termination/transfer of articleship are mentioned below:

• Students can terminate their articles at any time by providing a 30-day notice. Similarly, the principal can terminate articles by providing a 30-day notice.
• To initiate termination, students are required to submit Form 109 within 30 days stating relevant grounds for leaving or being discharged.
• Students who wish to transfer their articleship to another principal must first terminate their articles with the present principal.
• After termination, students must register with the new principal by filling out Form 103 within 60 days.
• ICAI acceptance is required to continue the articleship, particularly in such cases. Delays of any kind may lead to consequences like it may indicate the training completed.
• Transfers are typically permitted if the student has some serious problems with training or supervision at the organization where the training is being carried out.

Completing Articleship Abroad

ICAI allows candidates to pursue articleship abroad, provided they adhere to certain guidelines:

• At least one member of ICAI must be associated with the firm abroad as a principal or partner to train foreign articles.
• Candidates must have passed CPT either Group I or Group II of IPCC, and done an articleship of 6 months in India before going abroad.
• Both the principal and articles must be an associate of an international accounting authority which should be ICAI-recognized.
• Students must get a No Objection Certificate (NOC) from ICAI before starting articles abroad.
• Upon the foreign articles’ completion, candidates are required to work for a CA firm in India for a minimum of 6 months.
• The training abroad must align with ICAI articleship guidelines to be recognized.

Pursuing an articleship abroad can offer students an enriching experience, but it is crucial for them to carefully check the instructions before making this decision.

Challenges Encountered during CA Articleship

Undoubtedly, articleship is a vital phase in the CA course. However, students often confront various challenges and obstacles throughout this training period. Some common issues include:

1. Extensive working hours: Students frequently find themselves working beyond the standard 8-hour limit, particularly during audits and busy seasons. Striking a work-life balance can become challenging.

2. Work-related pressure: Organizations often expect more from articles, assigning them demanding tasks that can lead to stress and pressure.

3. Monotonous tasks: Initially, articles may find themselves engaged in repetitive and routine examination and verification tasks before progressing to more meaningful work.

4. Boredom: At times, articles may feel a sense of monotony and tedium, especially when repeatedly performing certain tasks.

5. Motivational struggles: Long hours, pressure, and monotony can take a toll on students’ motivation levels during their articleship.

6. Communication and independence: Some students may encounter difficulties in freely expressing their concerns or ideas to partners or seniors.

7. Supervision challenges: Insufficient guidance from the principal or a lack of interest in the articles’ progress can hinder the effectiveness of the training.

8. Stagnant stipend: Despite demonstrating commendable work, articles may face unwarranted denials for stipend hikes, leading to demotivation.

9. Principal changes: Unexpected transitions in principals can disrupt the articles’ progress due to adjustment issues and the need to adapt to a new working environment.

10. Leave-related matters: Firms occasionally exhibit reluctance in granting leaves to students during exams or emergencies, causing additional stress.

While completely avoiding these challenges may be difficult, adopting the right mindset and approach can help students overcome them. Maintaining discipline, effective communication, and a positive outlook are key factors in successfully navigating the articleship journey.