A Complete Guide on CA Articleship

Table of Contents

1. What is CA Articleship

2. Eligibility

3. Duration

4. Importance of CA Articleship

5. Scope of Practical Training /Articleship

6. Salary/ Stipend

7. Leaves Allowed & Working Hours

8. Transfer Rules

9. Forms related to Articleship

10. Conclusion

1. What is CA Articleship

CA (Chartered Accountancy) Articleship is a practical training program that is one of the mandatory requirements of the Institute of Chartered Accountants of India (ICAI) in order to become a Chartered Accountant. Candidates who pursue this training are called as Articled Assistants, or simply Articles. The articled student undergoes an extensive training of  the profession, having been attached with a Principal who is a member of the ICAI  and is permitted to train articled students.

2. Eligibility

Students need to fulfill the CA Articleship eligibility criteria in order to apply for Articleship. There is a variation in the eligibility requirements for CA Foundation Route and Direct Entry Route students.

CA Foundation Route: As per the current format of the curriculum, a student from CA Foundation Route needs to  fulfill these criteria to be eligible to begin his/her articleship:

• • Must have completed either or both the groups of CA Intermediate exams and
  • Must have completed the four-week Integrated Course on Information Technology and Soft Skills (ICITSS).

Direct Entry Route: However, Direct Route candidates can commence the articleship after fulfilling the following criteria:

• • For commerce stream graduates and post-graduates who have obtained a minimum of 55 percent marks or other stream graduates who have received a minimum of 60 percent can commence the articleship/practical training after registering for CA Intermediate Course, and
  • Candidates must have completed the four-week Integrated Course on Information Technology and Soft Skills (ICITSS).

3. Duration

The duration of practical training in CA course is 3 years. It is mandatory for the aspirant to undergo the first two years of the training period with a practicing CA i.e., a CA firm. However, in the third year, there is an option of choosing between either continuing the training under the same practicing CA or going for industrial training with a CA in industrial employment (Note: Industrial training shall be received under a member of the Institute working in the company/ industry where the article registers as an Industrial Trainee). Despite the fact that the Articleship training period is 3 years, CA student is eligible to appear for CA Final Exams after the completion of 2.5 years of training.

Note: ICAI has notified draft CA Regulations proposing to reduce the time period of mandatory articleship to 2 years.

4. Importance of CA Articleship:

CA Articleship is one of the most crucial phases in completing the CA journey. In the present era of immense competition, everyone needs to excel in his or her respective fields; and with articleship, one can get the required practical exposure of the profession. Some of the important aspects which can be learned during Articleship are:

• • Developing a professional attitude
  • Time management
  • In-depth practical knowledge of the subject while performing day to day work
  • Improved communication skills and experience of handling clients
  • Improved presentation skills
  • Abiliy to face challenging situations and developing problem solving attitude

5. Scope of Practical Training /Articleship

A CA aspirant can always choose areas of training based on his or her personal interests from various fields available in articleship. However, some of the options to consider for articleship training are the following:

• Auditing

– Tax Audit

– Bank Audit

– Statutory Audit

– Limited Reviews

– StockAudit

– InsuranceAudit

– Internal Audit

– SOX Audit

– ERP Audit

• Accounting & Consulting
• Taxation

– DirectTaxation

– IndirectTaxation

– InternationalTaxation/Transfer Pricing

• ROCCompliances
• Mergers & Acquisitions
• FilingTax Returns & Other Certifications

6. Salary/ Stipend

CA Articleship stipend varies from one firm or company or city to another firm or company or city. The benchmark rates of the stipend amount established by ICAI is different for all 3 years and are as follows on the basis of population of citites/towns:

There is no higher limit specified by ICAI for the payment of stipend to articles. Accordingly, stipend in Big 4 firms ranges from INR 10,000 to INR 20,000 usually.

Note: ICAI has issued draft CA Regulations and proposed to double the above rates. However, they are yet to be notified.

7. Leaves Allowed & Working Hours

As per ICAI, an Article can take 1/6^th of the period for which he/she has actually served (excluding leaves) which comes to 156 days leave during the three-year CA articleship period subject to a maximum leave of 180 days. The minimum working hours for an Article are fixed at 35 hours per week. However, the aggregate number of working hours shall not exceed 45 hours per week.

Also, a minimum of 3 months study period is allowed to students as leave for the preparation of CA Final exams.

8. Transfer Rules

Transfer/termination of the Articleship after completion of first year of articled training is possible on satisfying any one or more of the conditions as stated below:

1. Medical grounds requiring discontinuance of articles for a minimum period of three months (on production of a valid Medical Certificate).

2. Transfer of parents to another city.

3. Misconduct involving moral turpitude.

4. Other justifiable circumstances/reasons: –

i. Grounds already permissible in the Chartered Accountants Regulations:

a. Industrial Training

b. Secondment of articles

c. Death of Principal

d. Ceasing of practice by the Principal

e. Removal of name of the Principal from the Register of Member

ii. Marriage (only if there is relocation to another city involving distance of 50 kms or more).

iii. Irregular payment/non-payment of stipend

iv. Shifting by the Principal to another city involving distance more than 50 kms.

The articled assistants are required to get the permission from the Institute before getting Form 109 signed by the Principal in their own interest.

9. Forms Related to Articleship

10. Conclusion

CA Articleship not only trains you to be a better professional but at the same time it ensures that the theory studied in the books is applied practically so that the concepts are placed rock solid in the minds of the students. This practical training prepares students for real challenges in professional life. To conclude, in the words of Anton Chekhov,

“Knowledge is of no value unless you out it into practice”.

Dive Deeper:
Chartered Accountancy CA – Articleship Related Questions