16 July 2019
Please guide me I want to change my Auditor (Principal) on a mutual agreement I want to quit the articles from the current Auditor on health cause. I had completed 2 Year 4 Months Articleship. Can any one please tel me the procedure of Termination of Articles. And also tel me what kind of situations I may face in future because of this termination. and my principal is not given to approval letter. what is the another way is in the articleship termination.
09 July 2024
To terminate your articleship due to health reasons and change your Auditor (Principal) on mutual agreement, here’s the procedure you can follow:
### Procedure for Termination of Articleship:
1. **Mutual Agreement**: Since you have mutual agreement with your current Auditor (Principal) to terminate your articleship, follow these steps:
- **Discussion**: Have a discussion with your Principal about your intention to terminate the articleship due to health reasons. Express your willingness to terminate on mutual agreement.
- **Letter of Termination**: Write a formal letter addressing your Principal stating your reasons for termination (health reasons in your case) and request them to agree to terminate the articleship.
- **Acknowledgment**: Ensure that your Principal acknowledges and accepts your termination request in writing. This could be in the form of an acceptance letter or email from your Principal.
2. **Submission to Institute**: After receiving mutual acceptance from your Principal:
- **Form 109**: Prepare and submit Form 109 to the Institute of Chartered Accountants of India (ICAI). This form notifies the ICAI of your intention to terminate articleship. Include details such as your reasons for termination, acknowledgment from the Principal, and any other required information.
- **Documents**: Attach necessary documents including your termination letter, acknowledgment from the Principal, and any other supporting documents as required by the ICAI.
3. **ICAI Approval**: Once Form 109 and supporting documents are submitted, the ICAI will review your application. If everything is in order and your termination is approved, you will receive confirmation from the ICAI.
4. **Joining a New Firm**: If you intend to join a new firm or Principal, ensure you follow the procedures for registration and approval of the new Principal as per ICAI guidelines.
### Situations and Considerations:
- **Future Prospects**: Terminating articleship on mutual agreement and valid reasons like health generally does not negatively impact future prospects. However, ensure you maintain documentation and communication records for future reference.
- **Clearance and Experience**: Obtain necessary clearance certificates and experience letters from your current Principal for future employment or registration purposes.
- **ICAI Guidelines**: Adhere to all guidelines and regulations set forth by the ICAI to avoid any complications in the future.
### Approval Letter:
- If your current Principal is not providing an approval letter, ensure you have an acknowledgment or acceptance email or any form of written communication that confirms their agreement to terminate your articleship.
### Alternative Approaches:
- If there are challenges in obtaining the Principal’s approval letter, consider reaching out to the ICAI for guidance. They may provide alternative procedures or steps to resolve the issue.
- Legal Consultation: If necessary, seek legal advice to understand your rights and options in case of any disputes or issues regarding the termination process.
By following these steps diligently and maintaining clear communication with both your Principal and the ICAI, you should be able to proceed smoothly with the termination of your articleship and transition to your next professional steps.
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