A Complete Guide on CA Articleship

CA Articleship is a mandatory practical training period for CA students, offering hands-on experience in accounting, auditing, taxation, and financial management. Eligible students are those who have passed the CA Intermediate exams and completed the Integrated Course on Information Technology and Soft Skills (ICITSS). The standard duration of the articleship is three years, although there are discussions about reducing it to two years. This period is crucial as it bridges theoretical knowledge and practical application, helping students develop essential professional skills. The training covers areas like auditing, taxation, corporate laws, and financial reporting, providing exposure to real-world business environments and client interactions. The stipend varies from INR 2,000 to INR 10,000 per month, depending on the location and firm size, with ICAI setting minimum guidelines. Articles are allowed a maximum of 156 days of leave over three years, with standard working hours of 35 hours per week. Transfer rules permit transfers within the first year without restrictions, and in subsequent years with ICAI approval for valid reasons such as relocation or medical issues. Forms related to CA Articleship include Form 102 for the Deed of Articles, Form 103 for registration, Form 108 for completion, and Form 109 for termination. Overall, CA Articleship is a vital part of a CA student's journey, providing essential practical experience for a successful professional career.

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 CA Articleship
10. Conclusion

1. What is CA Articleship?

CA 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 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 percentage 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 the practical training in the CA Course is 2 years. It is mandatory for the aspirant to undergo the training with a practicing CA i.e., a CA firm. The articleship shall commence only after passing both the groups of Intermediate and further, the candidate shall be eligible to appear in CA Final Exams only after the completion of 6 months of study period which commences after articleship.

Note: The candidate can choose to undergo the industrial training in the last 9 to 12 months of the articleship period.

Provided that a candidate who was registered as an articled assistant for a period of three years, on or before the commencement of the Chartered Accountants (Amendment) Regulations, 2023, shall be eligible to continue and complete the remaining period of practical training as per the deed of articles executed irrespective of any break in the continuity of training.

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

1. 1. Tax Audit
   2. Bank Audit
   3. Statutory Audit
   4. Limited Reviews
   5. StockAudit
   6. InsuranceAudit
   7. Internal Audit
   8. SOX Audit
   9. ERP Audit

• Accounting & Consulting
• Taxation

1. 1. DirectTaxation
   2. IndirectTaxation
   3. InternationalTaxation/Transfer Pricing

• ROC Compliances
• Mergers & Acquisitions
• Filing Tax 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 are different for each of the years and are as follows on the basis of population of citites/towns. (Note: For students commencing articleship under New Scheme, only 1st and 2nd years’ data is applicable)

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.

7. Leaves Allowed & Working Hours

There shall be no exams during the two years period of articleship, thus, the number of leaves a student can avail during a year has been restricted to 12 days.

The working hours for articled assistants should be 35 hours a week, not counting lunch breaks. The principal’s training hours should be between 9:00 A.M. and 7:00 P.M. Assistants’ regular working hours should be between 11:00 A.M. and 5:00 P.M. They shouldn’t work more than 35 hours a week unless absolutely necessary, and in such cases, it shouldn’t exceed 45 hours. If they work extra, they get compensatory leave.

During the working hours, the articled assistant is not permitted to attend college/other institutions for pursuing any course including graduation. Accordingly, college timings of such course should not be such (after taking into account the time required to commute) which clashes with the normal working hours of the article training.

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 CA 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”.