The Chartered Accountancy Course is a very demanding and interesting course. Not only that the course content is tough, it even requires three years of rigorous training under practicing Chartered Accountant to gain practical experience in the various fields relating to accountancy. This can be in the areas of accountancy, statutory audit, internal audit, tax audit, taxation, management consultancy etc. One can also in the third year do industrial training in some organisation under a CA working in that organisation.

I had cleared the first group of inter, and after the exams for the second group, I started to search for articleship. And here the most interesting part of my sojourn to the world of articleship began. I went to meet a CA whom I had known for some time. When I mentioned that I wanted to know about where I should do articleship, I was confronted with the question - “Tell me you want to do articlesihp or what?” The question was really very confounding and quite strange. I had asked where I should do articleship, and I was asked back “you want to do articleship or what?". I said, “yes I want to do articleship thats why I have come to you for guidance". So that well intentioned CA again quizzically asked - “So, you mean to say, you want to work?". I wouldn’t go into detail of that conversation, but suffice it to say, that for getting a proper firm to do articleship, I visited handful of firms and spoke to CAs from young ones to elderly ones, and in most of the places, I was asked, “Are you sure you want to do articleship?".

Coming from a non-CA backgroud, that question was a bit difficult to understand in the beginning, but gradually as I explored the exotic world of CAs, the things became clearer and clearer. So, without going into details, I would rather put the things in some perspective.

The CA course requires that the CA student work as an Articled Clerk under a practicing CA, or if s/he is already working in some CA firm for over a year, then s/he can enrol as an Audit Clerk, and the duration in this case is four years. Needless to say, no one enrols as an Audit Clerk, and everyone goes for Articleship. In one of newspaper article I recently read, as it said, - the Audit Clerk was obsolete. So, needless to say, those who clear the inter/ pe2, and want to pursue the CA course to the full, enrol for articleship.

For articleship, the institute prescribes a certain amount as stipend for the first, second and third year of articleship. Though it never says that such stipend is fixed or it is a minimum base, most of the CAs would prefer to hire the articleship at the stipend stipulated by the institute. One can see it in many ways.

The CAs would prefer to see it as a cheap source of semi-trained manpower. The institute perhaps sees it as an opportunity that is being given to the student to gain practical training and also get some pocket money. From the students point of view, it is nothing less than cheap labour, as one is doing all the things and getting notional payback. Another way to look at it is that the CA course is quite cheap compared to other courses like MBA. However when one becomes CA, the payback becomes quite good. So in some way the money / labour that one expends that in a way subsidize the firms, despite of the notional stipend, goes to add to the cost of CA course. That way it makes the CA course equally expensive as the other professional courses.

Only a handful of audit firms pay proper stipend, that may range from Rs. five thousand to over ten thousand, depending on ones location and the firm. If one is doing articleship in one of the audit firms linked to the big four consultancies, then one can hope to get good stipend. Some bigger audit firms not having links to the big four also pay good stipend. During industrial training, if one gets into some big company then one can get a good stipend that might be at par of remuneration, and may not really rank as stipend.

Coming to the main question, many of the CA students would prefer to enrol in articleship only in name, without actually doing the articleship - ie. as the street name goes - they prefer to do dummy articleship. There are various reasons why a student might want to indulge in such malpractice. I knew a guy, whose brother after clearing inter, was working in some metro, while doing dummyship being registered with some rural chartered accountant. Not just that, even I was told by a well established Chartered Accountant, that I could enrol as an article with him, while I might work with some organisation, provided I did not sign any report there! As he said - “I will not have any problem, as I could easily get out of that, but if you get caught, you would be in deep trouble"!

One should remember quite clearly that articleship entails cost in various ways, and also entails lots of time doing outstation audit and related works. This leads to tremendous paucity of time for studies. Most of the student therefore find the easy way out. Apart from the pressure of the peer group, when ones friends are earning well, and one is earning pittance as an article, there are individuals who might think in terms of dummyship.

It seems that the institute does not have any control mechanism to check such practices. However, if such thing is found out later, even the registration may get cancelled. So beware before one even thinks of indulging in such malpractices. However, if the student indulges in such practices, it is the students who are the loser. Those students who indulge in such practices, even after doing CA in the end are left with just another degree and the always looming threat of cancellation of registration. CA is about the professional exposure and experience that one gains during articleship. Without that the CA is just another degree.

So, invariably my answer to “Are you sure you want to do articleship?” was always a resounding Yes!

All the experiences mentioned result from my meeting people/ CAs at Asansol, Kolkata and Jabalpur. Below I write compilation of some of the additional information / experiences in my search for articleship -

1. The big four…
The big four are the consultancy firms that have worldwide presence and have the highest revenue from fees based consultancies. These includes KPMG, E&Y (Ernst & Young), Delloitt, and PwC (Price Waterhouse Coopers). Technically these are consultancy firms and therefore one cannot do articleship in these. However one can do articleship in the audit firms that are linked to these firms. These audit firms include: for KPMG: BSR & Co (previously Bharat S Raut & Co) etc; for E&Y : SR Batliboi & Co, for Delloitt: AF Ferguson & Co, C.C.Chokshi & Co., Fraser & Ross, P. C. Hansotia & Co. and S.B.Billimoria & Co; and for PwC: Price Waterhouse, and Lovelock & Lewis. Here one must remember that while the consultancies are private limited companies, the audit firms are partnerships. This is because that unlike any other company, the auditors doing statutory audits cannot have limited liabilities.

2. Other bigger Indian firms…
While the audit firms that are linked to the big four are the biggest audit firms in India, there are many other big sized professional CA firms firms, some of them have foreign link up as well. These includes Lodha & Co (link with BDO), KS Aiyar & Co (linked with Baker Tilly), RSM & Co, Ajay Sethi & Associates etc. Many of these firms also have their own consultany companies or consultancies linked with some international brand. These firms may also have overseas works related to internal audit and consultancy. Of course, there may be many additions to this list - from different parts of the country. However, the question that one should always ask is whether the firm is being run professionally or like any business shop! For example, at one of the CA firms (not that big) that I went to and met its managing partner; while the elderly gentleman definitely seemed to have made a big business through audit and tax consultancy - as he told me - “come, work here for two three weeks, and then decide whether you would like to do articlship here, we can always get your form submitted back dated"!. While the offer seemed quite innocuous, as if putting the ball in my court - I only thanked him for his offer and never again went there, as I believe that a CA should be professional in his conduct under whom one is offering oneself for training.

3. Why is that the information on these so limited…
The Chartered Accountants and their firms are prohibited by law to advertise themselves. Whatever publicity occurs, it is often by word of mouth due to reputation that one has in the line or if some of them are active in the seminar circuits. The CAs cannot also put their firm names when they are authoring any book or publishing any article having wide circulation. There are even rules for CA firms putting up their firm websites. All these adds up to the situation where the aspiring CAs are left with little information regarding the field of CA except for what is published by the institute. CAs who are auditors are ‘backroom boys’ and do not get the limelight that the entrepreneur or a CA in employment as a CFO might get. Adding to the paucity of information, even some of the big four audit firms may not have a website!

4. Is big beautiful…
It depends on you. Big can be beautiful or ugly depending on ones preferences. If you are entrepreneur like, and do not like the corporate culture and aim to open your own firm, then a middle size firm for articleship should do good for you. Small sized firms or new firms dont have enough work available for the exposure that is needed to do articleship. Many of the new firms or smaller firms do the work of other bigger firms that they get on sub contract from the bigger firms. Apart from this, there is also the variety of work that is important. I met an HR executive of a big Four firm, and wanted to know about the variety of works for articleship purpose, and looking at my qualification, the HR executive was a bit amazed, saying that I was overqualified and there was no problem for my articleship; however the executive, somewhat disdainfully added - “…the articles do only statutory audit, and hardly would an articled trainee be put on any other assignment!” In contrast, in a well known (top ten) firm, I was told, that since I had an MBA, I would be engaged in management consultancy works as well - apart from the statutory and internal audits.

5. The process of inducting articles…
The standard process is the interview. I have not heard of any written test taken by any firm. But no one is barred from that. Usually one needs to apply to the firm, and appear in the interview. Some bigger firms may also take two interviews - one the standard interview and the second the partner level interview. In the end, one is doing articleship not under the firm, but under a CA. If you have been associated with the firm, or know the CA, you may not even need to appear for the formal interview. In one of the firm (top ten), that I contacted, the first level interview was taken by one of the partner, and the second level interview was taken by the managing partner heading eastern region - and the questions ranged from accounting entries, to audit issues like company audit, to risk analysis, among others.

6. Articleship, hard work and time…
Yes, articleship entails hard work. As regards time, though the institute prescribes certain norms (working hours, holidays etc), no firm really adheres to such stipulations, and the articled trainee would have to follow the rules of the firm (and if he is unlucky, the whims of the partner) in this regard. If one has to do works relating to statutory audits and internal audits, then one may need to travel to distant places - it can be city where the offices of the company is situated or even a factory site in remote places.

7. The best place…
CAs deal mostly with audit of financial transactions and taxation matters. Wherever there are large amount of financial transactions, the audit work would be required. In India, the best place perhaps is Mumbai, which is considered the financial capital of the country. Then there are the four - five metro cities where the bigger firms are concentrated. This is also because the head offices and decision making centers of the companies are also situated in these metro cities. Next to metros, there are also some other cities that are financially important like Kanpur, Indore, Coimbator etc. Place of articleship is perhaps less important compared to the nature of exposure to work that one is getting and also the variety of work that one gets to do. Moreover, as regards audit work - whether statutory or internal audits, the articled trainee may have to travel to distant places. Such outstation tours may be for a month or even more. These places can be remote areas where factories or mines or any such manufacturing establishments are located.

8. Does one get stuck…
No. The articled trainee can change his principal (with mutual agreement) under whom s/he is undergoing training. However one should give at least a six month shot (perhaps at least a year), before thinking of changing bosses. It goes without saying, that unless there is something terribly wrong, or the newer opportunity are too alluring, or there are compelling situations, one should not change. Usually the longer one stays, one gets better assignments, more responsibilities and gets more involved in the work of the firm. In such decision of change, the institute plays no role. The articleship deed is exclusively between the articled trainee and the CA.

Some practical issues relating to CA Articleship is dealt in Articleship Certain Rules

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