ARTICLESHIP, THE INITIATION

BALASUBRAMANYA B N (CCI STUDENT....) (44679 Points)

17 August 2010

ARTICLESHIP, THE INITIATION

What they study at the engineering college is different from what they do at the assembly lines. Little wonder that fresh engineers have to undergo a graduate trainee program in most factories. It is a process that initiates them into life in a factory. Ditto for students of the medical college. While the doctors do apply what they are taught in the classroom, their skills improve when they treat a patient hands-on. So the young doctors are not issued their medical certificates unless they complete year’s internship post-qualification.

No such thing happens in the case of chartered accountants. The rookie CA is straightaway pushed into the hustle-bustle of the corporate world. Does he not require the two year initiation that the engineer needed or the one-year internship the doctor wanted? Well, he doesn’t, because his article ship, an integral part of the CA program, prepares him for the life ahead. Article ship may not make him the perfect business executive but it offers him an opportunity to look at the business world from very close quarters.

The three years that you spend with a public accounting firm as an articled trainee is of great it gives you not only an interface with the industry but also an opportunity to develop into a well-rounded personality. It also comes of use in your examinations.

Many of those who have worked in firms where there is a preponderance of audit work have sailed through the audit paper without much effort, those who have worked in firms with a preponderance of tax work have found Tax papers easy, those bombarded with IT related assignments or Cost accounting assignments have found the IT/MICS/COST ACCOUNTING papers easier to crack, and those who are into back-office operations or into corporate accounting services sail through their Accountancy paper. All this is not surprising considering that practical work more easily stays in the mind. Remember when you learnt physics in the classroom, you definitely understood it when the teacher lectured and taught through the black board but you found it infinitely easier to understand when the experiments were performed in the laboratory.

FIFTEEN MANDATORY LESSONS IN ARTICLESHIP

How to apply Accounting and Auditing Standards in practice.
How to prepare and analyze financial statements.
How to prepare and file tax returns.
How to audit firms and companies.
How to do a systems study.
How to draft deeds and documents.
How to incorporate a company.
How to run Board Meetings.
How to conduct oneself while appearing before assessing officers.
How to do cost studies and fix prices.
How to prepare business plans.
How to value business.
How to work on the Net.
How to develop personality.
How to handle stress.

SHOPPING FOR ARTICLESHIP

Having firmed up your to build your career as a CA, the immediate decision you have to take is, where should I do my Article ship? The question of which firm should I join? Is very crucial as it decides what exposure you are going to get in the next three years. Look at these before making your call.

EXPOSURE OFFERED

Ask weather the firm offers variety in work. Would you just be doing statutory audit or would your work also involve internal audit, management audit, secretarial audit, due diligence, project evaluation, systems study etc. the broader the range of work, the better.

Every audit firm specializes in one or more areas. Some firms specialize in income tax while some in internal audits. Some handle corporate clients only, while others aren’t that fussy. Information about this can be gathered from friends doing Article ship in that firm. However, the best approach would be to meet the firm’s partner or the HR manager personally. Medium and big firms are usually departmentalized i.e, the staff and articled trainees are grouped into segments like audit, legal, taxation, management audit etc. so, once you join as an articled trainee in to experience the work of other departments. However, small firms provide you a chance to do all types of assignments.

FREQUENCY OF TRAVEL

The nature of the audit profession is such that it may call for traveling far and across-stock verification at a factory in a remote town or a depot audit city. Such travel excites a person who loves visiting places and meeting people of different cultures and languages. However, it also means that you might have to miss the coaching class which had enrolled. One has to evaluate and be prepared for such sacrifices. It is better to discuss your concerns about traveling with your principal upfront.

STUDY HOLIDAYS

Many a time students blame insufficient study leave for being unable to pass the examination. In a sense this is true. The CA Institute has prescribed the number of days of leave a trainee can take during his article ship period. This leave privilege should be well balanced so that one gets enough days of study holidays. It is good to discuss and agree with your principle the days of study leave that you will be allowed.

CAREER PATH

Some audit firms take articled trainees only up to the period of three years. There are others where the firm consciously chalks a career path so that upon qualification, the trainee can be absorbed in the organization. One, therefore, has to be clear of what he wants to do after qualification so that he can decide which firm to join.

SIZE OF THE AUDIT FIRM

Look at the standing of the firm. It is good to do article ship in a firm that enjoys a good brand value. Tomorrow when your CV does the round globally, the brand name will be a reasonable initial screening device that recruiters use. Size does matter. The bigger the size of the firm, the more are the opportunities to interact with various people in the firm and learn from their expert knowledge rather than just learning the hard way by experimenting things. Also, big firms have the resources to provide good infrastructure like laptops to trainees. Because of the size, it is also possible to organize a lot of training programmes this is a must for staying abreast in the profession.

BIG FIRMS

SMALL FIRMS

Ø You will rubbing shoulders with the top corporate professionals.

Ø The Brand Name

Ø Your appreciation of AS, your ability to apply SAP and your interpretation of GN would show significant improvements

Ø You are likely to work amidst a trained and organized team that provides you with inputs on audit programs, global audit knowledge bank. At 20 something, you are exposed to the work culture and pressure that prevail in the corporate world.

You get to do all kinds of work-accounts, audit, tax and infotech.

You get to interact with the partner directly.

If there is a fair sprinkling of clientele, then your article ship period is made.

At the end of the day, you may not carry a brand name but you would have learnt many a thing to its last detail. Remember, god is in the details.

THE CITY Vs. TOWN DILEMMA.

Where should you do your article ship in a metro, city or town? There are pros and cons that you must carefully weigh before making a choice. Working in metros or toe cities has its advantages. The composition of work is likely to be better, you have access to good classes, and mixing and matching brains with a city bred can add a sharp does of confidence in you and set your adrenalin flowing. The work culture and pace in the metros are several notches above those in towns. Being away from home will also help you learn responsibilities. You receive more polish in life. On the flip side, the cities are more crowded, more corrupt. There is a lot of chance, especially because of your age and your being away from home, to have your priority mixed and end up not studying. In the end what is important is getting through your CA..