Termination of articles

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 March 2014 Dear All,
Good Afternoon.

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 3 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.

Thank you..

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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20 March 2014 First you required to send request for termination to ICAI on a white paper with the details of reason for termination with supporting documents.

After getting permission from ICAI then has to submit form 109, after submission of form 109 then submit form 103 with the new employer for the balance period of articleship.

If there is any time gap between termination and re-joining into articleship then such gap period considered as articleship break period,since your articleship completion date shall extended for that period as well as your final attempt eligibility may be extend. So plan to re-joining date of articleship is as early as possible from termination date.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

22 March 2014 First I am thanking you for the support. As per your reply, I have few doubts, they are as follows:

1. Reason for Termination with supporting Documents - Please suggest me what kind of Documents I should enclose.

2. Articleship Break may cause delay in getting Final Attempt - As per the ICAI Guidelines an Articled Assistant after completion of Two and Half Years Articles period can eligible for Final Attempt, so please advice me can I do 3 more months articles under the same Principal (Auditor) and then proceed for Termination ?

3. In addition to your advice, Please tel me what kind of problems I may face in future employment. For example am I asked by the employer in the interview

i. Why you had taken Termination from your Articles.

ii. If your Health may not be good in some situations how can I give you the JOB.

iii. As like any.

Thank you ..

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Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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24 March 2014 1) means you are saying you taking termination on behalf of health grounds, so you shall produce the medical certificates,medical bills etc... issued by your doctor about your health along with his suggestions to care about your health.

2) Yes, as per the ICAI regulations those who are in the last six months of articleship training including excess leaves if any as on the first day of the exams commencing month are eligible to write Final attempt for such attempt.

For example due to your personal reasons you not attended office for articleship training for 15 days then it is considered as articleship training period and shall considered as leave and extension of your articleship training period shall depending on the total leaves taken by you during your articleship training period.

In case you not attended office for 15 days due to the termination(means time gap between termination and re-join into articleship in another firm) then your articleship training period completion date shall extended by 15 days then actual completion date(for example earlier you articleship completion date is 20-4-2014 now your articleship completion period is 5-5-2014), means this 15 days is not a leave and it is considered as break in articleship training means you voluntary decided to stop training for some days, so your extension of articleship training period shall decided immediately when you re-joining into your articleship training.

Now coming to your case and clarifying your doubt.

You completed 2years of 3 months of articleship training period as on 24-3-2014(assuming this date for example purpose only) based on this your articleship training shall be complete by 23-12-2014 means you are eligible for November 2014 attempt and on 1st November 2014 you have 1 month 23 days remaining articleship training period) as on today you terminated your articleship training and re-joined into articleship on 24-4-2014 means one month later then your articleship shall be complete by 23-1-2015(because of the period between 24-3-2014 to 24-4-2014 shall considered as break in articleship training not considered as articleship training period and then as on 1st November 2014 you have balance of 2 months 23 days of articleship training period) thus delay in articleship training period there is increase in articleship completion period so delay may cause to change your first eligible attempt of final, so ICAI suggests do complete re-registration to articleship after termination as early as possible to avoid postponement of eligible attempt.In our case example if there is delay in re-joining into articleship training after termination is more than 4 months 8 days then articleship completion date is after 1st May 2015 then he losses Nov'14 attempt because of as on 1st November 2015 he has articleship training period balance is more than 6 months(means not in last six months of articleship training)

So now clarification and conclusion to your case: as per your information you completed 2years 3 months of articleship by the middle of Mar'14 based on this it is clear your first final eligible attempt is Nov'14, and balance of articleship training period as on 1st November 2014 is below 2 months,so if you taken termination now and re-joined into articleship with in between 4-5 months(based on the days gap available to you to complete march'14 after termination) after termination date then you are eligible to November 14 attempt and doesn't postponed your actual eligible attempt.

NOTE: I didn't considered excess leaves concept, i make any example to you for understanding of break and articleship training period and its impact on exam eligible attempt only, doesn't considered leaves concept.

3) The problems facing may depending on the employer where you want to join to continue your articleship.
The questions raised by you may be possible while you go for to join into articleship in another firm but it is your personal issue, based on the facts and available sources you can explain them and satisfy them.

For example if the old employer city and new employer city is different and you staying away from your parents for articleship training then you can say due to staying at that city and environment problem and hostel food i loose my health and doctors suggested change the atmosphere so i decided to come back to home town and stay with parents and to complete my articleship training here etc... like this you can explain based on the facts and situation of you, so with out know complete facts of your case and situation i couldn't give direct suggestion.

OM SAI SRI SAI JAI JAI SAI

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Querist : Anonymous

Querist : Anonymous (Querist)

24 March 2014 Thanking you SAI, All my doubts are resolved. But according to my previous post only the 3rd point I want to know something different what you replied me, WHAT I mean I am asking about the Problems in JOB in future I may face not with the next Auditor in Articleship! I mean after completion of Chartered Accountancy Course.

I am very much thankful for your valuable reply's.

Regards
Vivek Reddy.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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24 March 2014 At present you are in articleship training so you used word JOB mean i understand you considered your articleship training as JOB,So i suggest like that.

As per my view when you going to JOB it is not important why you taken termination the only important one is, is you qualified or not and is you have valid certificate etc... this angle will important and place of articleship training much not important. So you 99% may not face any problem due to termination.

OM SAI SRI SAI JAI JAI SAI

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Querist : Anonymous

Querist : Anonymous (Querist)

25 March 2014 Thank you very much all my doubts are cleared.

Regards
Vivek Reddy

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