Reforms In CA Articleship - Problems & Its Solution
CA Articleship is considered to be the backbone of entire CA course as here students start working and learning things practically. However there are certain issues/problems in the articleship phase which majority students have to face and serious reforms required in CA Articleship by ICAI at the earliest. Here I am highlighting all the issues faced by CA students and the change required to make 3 years of articleship experience worthy and enriching.
In this blog I will be highlighting all the issues in detail pertaining to CA Articleship - however those who wants to know more about how to get a good CA articleship firm can read this blog - Click here
Also you can attend our free course on "All About Articleship" from here - Click here
Lets Begin - List of All Problems
1) Articleship duration - 3 years is a long period -- while students can acquire new age skills in just few weeks which make them employable - in CA articleship even after working for 3 years - students can not work independently - so whats the use of such a long period of CA training.
2) Lack of proper exposure - In India majority firms are small or medium sized where few partners with couple of their staff members and articles work --- they do not have proper infrastructure, big clients etc.. due to which article assistants not able to learn what they should be learning in those 3 years of their articleship.
3) Articleship period not counted as work experience in industry - If student completes 3 years of articleship but does not able to clear CA exams -- he/she has left with no choice but to move into a job for living, but the issue is no one is going to recognize their 3 years of sacrifice and they have to start as a fresher at just 10000/20000 per month which a graduate can easily get.
4) Low stipend - ICAI articleship stipend is not enough to meet ones basic needs and in situation where individual has a family and needs minimum earning to ensure his living cannot do CA course because stipend is too low 2000 per month.
5) Articleship transfer - Though ICAI allows transfer in the first year of articleship but with mutual consent between principal and article - however ICAI does not intervene if principal does not allow the transfer which cause serious hurdles for CA students - restricting their growth opportunities.
6) Articleship under CA firm only - In other parts of the world for similar qualification, their institute allows training in finance/ accounting/ taxation irrespective of the fact whether that is acquired in a CA Firm or in a company. However ICAI has restricted the knowledge gaining experience of articles by restricting them to undergo articleship only under a practicing CA who might not have enough good assignments to help article gain knowledge in different spheres.
7) Working time - Though ICAI has fixed 35 hours training a week but CA articles have to work for 10 hours a day for 6 days (10 AM to 8 PM) i.e. 60 hours - however they are not paid for these extra hours, neither granted leaves later on.
8) Leaves in CA Articleship - Generally principal does not allow full 1/6th leaves of the days worked at the end of the articleship for CA final exams.
9) Reference in CA firms - Students find it really difficult to get into big 4 and other top CA firms - and without reference it becomes even more tougher. With lack of exposure they have to work in smaller firms and not able to get good exposure.
10) Dummy Articelship - When ICAI members are so ethical then why the concept of dummy articleship exist -- those students who do not get good articleship - prefer taking a dummy articleship (on papers) while they concentrate on studies -- however in this way CA trainees are unable to get practical exposure and if they are unable to clear exams then they are left with no choice but to start afresh.
What Is The Solution ?
We need to do a bifurcation of our members into two parts - One going into industry and other going for practice. Now any prudent person would agree that a member in practice should spend more time in CA firm than a member who wants to go in the industry. On this criteria CA articleship can be reduced to 2 years and those who wants COP may be required 1 more year of post qualification experience in a CA Firm before applying for COP.
Simultaneously with the above change CA students should be allowed to appear in the exams after 1.5 years of their articleship. CA students will undergo approx 1.67 years (after taking 1/6th leaves from 2 years of articleship) and then can give CA exams. This will surely make CA course enriching for students and more bright minds will enter the course who wants to do CA but just because of 3 years of articleship at low stipend they hesitate to enter and try for better options.
Industrial training should be allowed in the 2nd year of articleship at the option of the student.
I have interviewed many students and more than 90% agree that the work they are required to do in 3 years can easily be learned in 5-6 months and then they just have to repeat the things (a kind of clerical work and serving their principal as a bonded labor) - Click here
We should ensure CA course is made for great learning and not with an objective to provide cheap labor to our members.
I hope you will share this among others to invite support for reducing CA articleship to 2 years.
With your support I will raise this issue with ICAI and will bring this change for sure