Dummy Articleship in CA – Is it Advisable?

What is Dummy Articleship?

Dummy Articleship refers to the practice where a Chartered Accountancy (CA) student is officially registered under a practicing CA for articleship but does not actually work or gain practical experience. Instead, they may focus on studying for exams, work elsewhere, or engage in other activities. This practice is against the regulations set by the Institute of Chartered Accountants of India (ICAI) and is considered unethical and illegal. ICAI mandates that articleship training should be a hands-on, practical experience to ensure that students gain the necessary skills and knowledge to become competent professionals. Engaging in dummy articleship can lead to penalties and disqualification from the CA course.

Table of Contents

1. Introduction
2. Advantages
3. Disadvantages
4. Action taken by the Institute
5. New Syllabus of CA
6. Conclusion

1. Introduction

The articleship or the practical training is the backbone of Chartered Accountancy (CA) and such other professional courses as it gives an opportunity to the articled assistants to acquire on-the-job work experience of a professional nature, inculcate a disciplined attitude for hard work, develops necessary skills in applying theoretical knowledge to practical situation.

In this regard, the Institute of Chartered Accountants of India (ICAI) has been taking various initiatives from time to time to streamline and sustain the efforts in providing effective articleship. Currently, the total period of articleship is two years after clearing both the groups of CA Intermediate Course.

Articleship can best be explained with a quote that says swimming cannot be learned by reading about it. However, students find an easy route to by-pass this period of two years by registering for the articleship training under a known/relative practicing CA and choose not to actually undergo training. This is commonly known as Dummy Articleship; where one gets registered with a practicing CA for a mandatory period of two years but do not attend the office, i.e., all the things are merely on paper and no actual training is being imparted by the Principal to the Articled Trainee. The said practice is not legally acceptable as per the guidelines laid down by the institute.

The following are the pros and cons of undertaking articleship in a dummy manner:

2. Advantages

1. Enough time for study & attending classes: One of the major advantages of undergoing dummy articleship is that students get extra time for the preparation of strenuous curriculum of CA and also be able to attend CA tuitions/coaching classes as per their convenience. This usually gets difficult to manage for students if there is a regular office to attend along with their graduation colleges. Further, a student gets only a few months after completion of articleship in order to prepare for CA Final examination which poses another pressure on the students to complete their studies with paucity of time. Hence, students find dummy articleship a viable option to get ample study time and also aim for a rank in examination.
2. Relieved from 2 years of low pay work: A major negative sentiment for regular articleship is born out of the fact that the remuneration in the form of stipend given to articled assistants is very low as compared to a person performing the same work employed full-time. Hectic workload and long working hours in order to meet deadlines increases pressure on the firms manifold. This pressure comes down to the working level persons which are none but articled assistants. Also, initially the articled assistants are in their learning phase but gradually in the second year, many a times they are forced to do the same tasks repeatedly creating an impression that they are highly underpaid for the work they are alloted. However, ICAI has acknowledged this fact and set minimum stipend for various cities and has also revised the same from time to time as and when deemed necessary.

3. Disadvantages

1. No practical exposure: One of the biggest losses for a student opting for dummy articleship is no practical implementation of what he/she has learnt theoretically. Albert Einstein highlights the importance of practice by quoting “In theory, theory and practice are the same. In practice they are not”. Without having a practical exposure, one cannot apply theoretical concepts in reality when it is required. Also one can have much more clarity in understanding any concept once it is practically implemented. It is a proven fact that it stays in the mind for a longer duration once it is in practice.
2. Difficulty at the time of interview: In the interviews, the panelists always tests for the work undertaken during the articleship and lessons learnt. Also they assess the confidence and the sharpness of the mind of the student. Only those students who have performed regular work in articleship will be able to grasp the knowledge quickly and resultantly be confident enough to answer the questions of the interviewers. It is therefore, advisable to undertake articleship diligently.
3. Additional cost to bear: Some CAs agree to provide dummy training, but only at the cost of some remuneration (varies from city to city) for bearing such risk, as it involves going against the norms laid down by ICAI. This may lay down hardship for financially weaker students and may even cost a failure in their CA exams if they get themselves engaged in part time/full time jobs to pay off the remuneration.
4. No hang of the corporate world: During the articleship period, one gets to interact with various officials from different companies and know various cultures and office etiquettes. This period moulds the personality of the individual and prepares him/her to be future ready and face the corporate world. One needs to come out of his/her shell and see the outer world in order to succeed in career. Articleship provides this opportunity at a very early stage of one’s career.

4. Action taken by the Institute

As such there are no rules or guidelines issued by ICAI to curb the practice of dummy articleship and many a times the Institute is not strict enough to ensure or verify the authenticity of the training of the articles, making it easier for some firms to practice this way-through of articleship. However, there are also cases where when it is evident that the student has not undertaken articleship legally, then the period served illegally is considered null and void and the student has to start the articleship afresh.

5. New Syllabus of CA

ICAI and its Council members have implemented the New Scheme of Education and Training 2023 where it has reduced the articleship period from 3 years to 2 years. This step can bring a radical change in the mindset of the students and influence them positively by undertaking this training seriously and legally. This may also reduce the monotony in work profiles of an articled assistant and at the same time learning adequate skills for presenting oneself to the corporate world comfortably.

6. Conclusion

It is not advisable to undergo dummy articleship as it deprives one of the very important aspect/feature of the CA Course i.e. essential practical knowledge of the different theoretical aspects which one studies throughout the Course. The course of Chartered Accountancy demands determination and perseverance from its students and it can be easily managed along with the articleship with right learning attitude. Even lessons acquired during articleship may help the students in learning the theoretical portions quickly. Thus, with the right spirit, the training is a boon for the students and must be undertaken earnestly.