1. What is the enabling regulation for Articleship Training?
During the CAP - III / Final Level 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 work full or part time as an industrial trainees with practicing chartered accountant members and in financial, commercial or industrial undertakings. The period of such Industrial training may not be more than a year.
3. What is the eligibility to join Articleship Training?
Student who has passed CAP - II / Intermediate Course can join for the Articleship Training.
4. What is the duration of Articleship Training?
5. Who train Articled Trainees?
Only those Chartered Accountants members, who have obtained the Certificate of Practice as per Rule 49 of the Nepal Chartered Accountants Regulation 2004, are entitled to train articled trainees.
A Chartered Accountant member, herein referred to as "Principal" shall be entitled to train articled trainee provided he:
- has been in continuous practice for a period of at least 3 years can train 2 Articled Trainees
- has been in continuous practice for a period of at least 5 years can train 4 Articled Trainees
- has been in continuous practice for a period of at least 7 years can train 5 Articled Trainees
- has been in continuous practice for a period of at least 10 years can train 6 Articled Trainees
- has been in continuous practice for a period of at least 15 years or more can train 7 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/ programme, subject to the following conditions:
- 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.
- 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
- 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 updates the list of 'Principal' and the 'number of Article Trainee they can engage' time to time. Student can get the information from the Institute and contact with Principal by himself.
8. Should a student get any stipend during the articleship training?
A student registered as an Article 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 can be review time to time. The current minimum monthly stipend rates are as follows:
9. Whether the Institute or Principal provides the stipend to Articled Trainee?
Stipend is provided by the Principal whom the Articled Trainee served under.
10. Can a Principal give more stipends than the minimum specified by ICAN?
It depends upon the performance of the Trainee and consideration of principal.
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.
13. Whether an articled trainee can take 120 days leave at the early days of third year of articleship period?
An article trainee can be granted not exceeding more than 120 days in three years, excluding public holidays. The trainee shall be granted leave, if reasonable notice has been given to the principal. For the given case, s/he can take 120 days leave at the early days of third year of articleship period.
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 understanding between Principal and Article Trainee. ICAN does not interfere for this reason.
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 shall be accumulated. So the Article Trainee who has not taken leave during first and second year can have his/her leave accumulated and can be carried forward to the third year of articleship period.
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 compensatory leave and other remedies depend on mutual understanding between Principal and Article trainee. ICAN does not interfere for this reason.
18. Can the Principal reject leave application submitted by an Article Trainee for appearing in the Institute's examination?
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 Article 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 5 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. The period of the exchange should not exceed one year. 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. 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 of 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.
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.
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 one month's prior permission from the Institute and similar information from the articled trainee can terminate the deed any time.
25. Does the Institute issue any certificate after completion of Articleship Training?
The principal shall inform the Institute successful completion of the articleship training in the prescribed form by ICAN. The Institute, after receiving such information from the Principal, shall issue Certificate of Completion of Articleship to the students successfully completing the articled training.
26. Whether an Article Trainee may join Industrial Training instead of Articleship Trianing?
In order to gain practical experience, an article trainee 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. This is subject to prior approval from the industrial organization to be served or such principal. The following are some of the list of organizations which an articled trainee may serve during the period of practical training
- The Office of Auditor General,
- Nepal Rastra Bank,
- Commercial Banks/Financial Institutions
- Fully or partially owned Government's undertaking,
- Insurance companies,
- Public Company whose paid up capital is not less than Rupees fifty million
- Any other Institution or Organization approved by the Council.
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. A Chartered Accountant 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.