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Articleship

  • Articleship

 

1. What is the enabling regulation for Articleship Training?

During the CAP - III / Final Level of Chartered Accountancy Course, a student has to undergo Articleship Training for the period of three years as an Articled Trainee under a Practicing Chartered Accountant along with theoretical education under Rule 24 of The Nepal Chartered Accountants Regulation, 2004.

2. What is the Practical Training?

In Chartered Accountancy Education, practical training is instrumental in shaping accountancy as a well-founded and highly dignified profession exposing the students to adequate knowledge of accounting, auditing, taxation, information technology, system design etc. It also ensures job opportunities for striving and thriving students devoted to accountancy as a prestigious profession for the overall development of the country. Here, the students can make the best use of the practical training period working with a practicing chartered accountant member. They can also as an industrial trainee with practicing chartered accountant member in financial, commercial or industrial undertakings. The period of such Industrial training shall not be more than a year.

3. What is the eligibility to join Articleship Training?

Student who has passed CAP - II level shall join for the Articleship Training before registration in CAP III level.

4. What is the duration of Articleship Training?

Three Years.

5. Who train Articled Trainees?

Only those Chartered Accountants members, who have obtained the Certificate of Practice are entitled to train articled trainees, as per Rule 25 of the Nepal Chartered Accountants Regulation 2004.
A Chartered Accountant member, herein referred to as "Principal" shall be entitled to train articled trainee as follows:
If Principal is in practice obtaining certificate of practice Can train 1 Articled Trainee
If Principal is in continuous practice for a period of at least 3 years  Can train 3 Articled Trainees
If Principal is in continuous practice for a period of at least 5 years  Can train 5 Articled Trainees
If Principal is in continuous practice for a period of at least 7 years  Can train 7 Articled Trainees
If Principal is in continuous practice for a period of at least 10 years  Can train 10 Articled Trainees
If Principal is in continuous practice for a period of at least 15 years or more  Can train 12 Articled Trainees

6. Do the Principal can engage additional Articled Trainee beside the above mentioned number?

A Chartered Accountant member can engage an additional articled trainee in training activity/ program, subject to the following conditions:

  1. an additional training period needed by a Chartered Accountant member holding Certificate of Practice from a foreign accounting firm whose training period is not equivalent to the required period or standards in accordance with Nepal Chartered Accountants Regulation, 2004.
  2. remaining training period needed to be attended by an articled trainee from the date of death of the principal or his termination by the Institute or his giving up accountancy profession
  3. for the remaining period needed to attain because of abruption due to the situations as stated in sub-rule (2) of rule 12, sub-rule (3) of rule 36 or sub-rule (3) of rule 37 of the Nepal Chartered Accountants Regulation 2004.

7. How to a student can reach to principal?

Institute provides the list of Audit Firms along with their address and contact number in its website. Student can get the information from the Institute and contact with Audit Firm by himself/herself.

8. Should a student get any stipend during the articleship training?

A student registered as an Articled Trainee is entitled to receive a minimum monthly stipend as per the rates specified under Rule 27 of The Nepal Chartered Accountants Regulation, 2004. The stipend rate is reviewed time to time. The current minimum monthly stipend rates are as follows:

Year Minimum Stipend per Month (NPR)
1st Year 5,000
2nd Year 7,000
3rd Year 10,000

 

9. Whether the Institute or Principal provides the stipend to Articled Trainee?

Stipend is provided by the Principal who engages the Articled Trainee.

 

10. Can a Principal give more stipends than the minimum specified by ICAN?

Principal can provide stipend to the Articled Trainee equal to or above the minimum stipend determined by the Institute.

 

11. Whether a Principal may receive financial benefit from Articled Trainee?

The Principal shall not receive / accept any kind of fee, donation, charge, loan, deposit of any other kind of financial benefit of facility from the articled trainee.

 

12. What is the entitlement of leave of an Article Trainee?

An articled trainee shall be granted forty days leave in one year, not exceeding more than 120 days in three years, excluding public holidays. Leave exceeding the permitted limit under the regulations shall be adjusted in the leave earned during working extra days during the extended period of articleship. Public holidays during leave period shall be included in the duration of leave taken. If an Articled Trainee takes leave for more than as permitted, it will lead to extension of his/her Articleship Period.

 

13. Whether an articled trainee can take 120 days leave at the early days of third year of articleship period?

An Articled Trainee can also be granted leave of 120 days at the early days of third year of Articleship period based on mutual consent between Principal and Articled Trainee.

 

14. Whether public holidays mean public holidays or particular audit firm's holidays?

Public holiday means the holiday declared as public holiday by Government of Nepal.

 

15. Whether an article trainee who has worked during public holidays can take compensatory leave for such number of days?

The compensatory leave depends on mutual consent between Principal and Articled Trainee.

 

16. Whether an articled trainee who has not taken leave during first and second year can have his/her leave accumulated and carried forward to the third year of articleship period?

Leave due can also be accumulated. Hence, the Articled Trainee who has not taken leave during first and second year can have his/her leave accumulated and it can be carried forward to the third year of Articleship period based in mutual consent between Principal and Articled Trainee.

 

17. Whether an articled trainee who has worked for more than 40 hours in a week can have remedies and if, then of what sort?

The remedies depend on mutual consent between Principal and Articled trainee.

 

18. Can the Principal reject leave application submitted by an Article Trainee for appearing in the Institute's examination?

No.

 

19. Can the Principal reject leave application submitted by an Article Trainee for other purpose?

Yes, granting leave for any other purpose is under the discretion of Principal. So the Articled Trainee should produce satisfactory explanation of leave and take leave after taking Principal's permission.

 

20. What are the working hours of Articled Trainees?

The working hours of an Articled Trainee shall be 40 hours a week and working hours must be between 9 AM to 6 PM.

 

21. Is there provision of exchange of Article Trainee?

Yes, with a view to provide special skill and practical experience in a particular area, a principal can depute an Articled Trainee to another principal with mutual consent of both parties. The period of the exchange should not exceed one year. Details of such exchange of Articled Trainee must be reported to the Institute.

 

22. Should the Principal report the record of Article Trainee to Institute?

The Principal shall keep an updated individual record of every Articled Trainee's performances in the specified format by ICAN. The Principal shall report detailed particulars of training of individual Articled Trainee in the specified format. Format for such reporting is provided in Annexure 19 and 20 of Nepal Chartered Accountants Regulation, 2061. This should be reported to the Institute in every six months or as and when demanded by the Institute.

 

23. Should the Principal's position be notified to Institute?

Yes, in case a principal dies or gives up his accountancy profession or is unable to continue his training job for some unforeseen reasons, his partner, or any or his legal representative or an employee working in his accounting firm shall have to inform the Institute and submit a report about the principal's situation within 30 days from the date of the above occurrence with detailed information about the articled training. Format for such reporting is provided in Annexure 18 (Part A) of Nepal Chartered Accountants Regulation, 2061.

 

24. Can the 'Deed of Articleship' be terminated?

The deed of articleship can be terminated at any time through mutual consent of both Articled Trainee and his principal. Information regarding termination of the deed of articleship must be reported to the Institute within seven days from the date of termination. After the termination of the deed of articleship, the Articled Trainee may be assigned to another principal for the remaining period of practical training. Format for such termination is provided in Annexure 18 (Part B) of Nepal Chartered Accountants Regulation, 2061.
If an Articled Trainee remains absent continuously for more than 15 days without any prior information, the Principal may request to the Institute for permission to terminate the trainee's Deed of Articleship. The Institute may grant permission to terminate the deed of articleship after proper investigation on the request forwarded.
The principal with prior permission from the Institute or Articled Trainee and with one months prior notice can terminate the deed at any time.

 

25. Does the Institute issue any certificate after completion of Articleship Training?

The principal shall inform the Institute about successful completion of the articleship training in the form as prescribed by ICAN (Annexure 16 of Nepal Chartered Accountants Regulation, 2061). The Institute, after receiving such information from the Principal, shall issue Certificate of Completion of Articleship (Annexure 17 of Nepal Chartered Accountants Regulation, 2061) to the students successfully completing the articleship training.

 

26. Whether an Article Trainee may join Industrial Training instead of Articleship Trianing?

In order to gain practical experience, an Articled Trainee in 3rd year of Articleship Training may serve a particular industry as part of the practical training activity for a period not exceeding one year. The industrial training shall be received under the guidance of a Chartered Accountant member of the Institute engaged in such an organization for a period of more than 5 years. This is subject to prior approval from the industrial organization to be served or such principal. The following are the list of organizations where an Articled Trainee may serve as an Industrial Trainee: 
  • The Office of Auditor General,
  • Fully or partially owned Government's undertaking
  • Entity or company where compliance of NFRS is applicable mandatory
  • Any office or regulatory body under constitutional body, Nepal Government, Province Government, local government
  • Any other Institution or Organization as approved by the Council
A Chartered Accountant member of the Institute is eligible to take up two Industrial trainees at a time. The period of practical industrial training shall be as calculated by the Institute under Rule 24 of Nepal Chartered Accountants Regulation 2004. Leave taken by the trainee during the period of industrial training shall be adjusted within the total leave granted to him during three years' period of training. 
 

27. Who shall be responsible to pay the stipend to the Trainee?

The Principal, under whom the industrial training is being undertaken, shall be responsible for paying stipend to the trainee as per articled regulations, Rule 27 of Nepal Chartered Accountants Regulation 2004. However, a higher stipend than that prescribed can be paid to the Articled Trainee.