The avenues of industrial training in Chartered accountancy are initially with a servicing chartered accountant after intermediate pass, and in the final level, the students opt for the industrial training. Investment banks, regulatory bodies, a foreign company, state government department and central government department are suitable for pursuing industrial training to the chartered accountants. ICAI notifies changes related to the training of articled assistants to make the practical training close to the real-time scenario. The foreign company in case of offering industrial training needs to be approved. The international federation of accountants is the authority to approve. Out of three years of article ship training, nine months to eighteen months go for industrial training. The balance of 24 to 27 months he or she works with the principal. The students can do industrial training in a foreign country provided the practicing accounting body. The accounting body must be approved by the international federation of accountants. Exposure to the practical problem is a crucial part of student’s training as the students prefer foreign opportunities and big four companies.
Previously, the audit firm and industrial training are with a proportion of two years and one year. The industrial training is for one year, and it is up to the discretion of the student to go for training under practising chartered accountant or industrial training. Now the one year is ruled over as nine to eighteen months to open the opportunities to the chartered accountants. This amendment comes into action from the 22nd of June, 2021. The approved companies can offer only industrial training to chartered accountants. Article ship training is mandatory for a chartered accountant, but industrial training is only to educate the problem-solving attitude to the students. In the current scenario, procuring industrial training enhances job opportunities for chartered accountants. Let us validate the discussion about industrial training with an understanding of the functional and divisional structure of investment banks, Banks, government departments and foreign companies. If you want to find the answer to the question that what makes the difference between article ship training and industrial training, then read more into this blog. CA industrial training – A complete guide is to educate the students about the chartered accountancy course.
Investment banks industrial training:
The industrial training opportunities open to the student with interest over the stock market are as follows: top investment banks such as HSBC, Goldman Sachs, Nomura, Credit Suisse and Morgan Stanley. The aptitude test consists of questions from tax laws, accounting standards, current affairs and administration. The interview with these companies consists of three rounds. Multi-tasking with exposure to the subject knowledge and English knowledge help to handle international clients. Valuation, fundraising, industrial analysis and understanding business model are the experience-based practical knowledge that students gain from the industrial training of the investment banks.
Banks industrial training:
If students undertake industrial training with banks, then two years of article ship training is mandatory. The students must have detailed knowledge about the regulatory frameworks, computer skills, financial data analysis, accounting concepts and communication skills. Students receive a stipend of 20,000 per month during the industrial training. With the experience from the banks, the student understands the internal competition, risk assessment, and different schemes of the banking industry. ICAI training rules revised key highlights are to make the chartered accountancy profession as per the global trends.
Government department’s industrial training:
The state and central government departments have audit functions. The work process is different in private and government Companies. Chartered accountants skills are more suitable for private than government. The industrial training has been arranged as per the guidelines of ICAI. The training program was sponsored by the ACA, FCA and members of the ICAI institute. Exposure to Government departments enhances the administrative skills of a chartered accountant.
Foreign companies industrial training:
The student can take industrial training with foreign companies in the financial, industrial and commercial processes. The upper limit for a fixed asset should be one crore, turnover of worth ten crores and paid-up capital worth fifty lakhs. The working hours of the articled assistant are the same as in India. The student needs to get an employment pass for staying abroad. It gives exposure to the international work process to chartered accountants.
Manufacturing sector industrial training:
The chartered accountant gets exposure to tax laws, GST, statutory audit, and ROC with experience in the manufacturing sector. As these functions are the core subject in chartered accountancy, it helps to secure more marks for a chartered accountant in the CA-final.
The current industry scenario and past scenario has changed practically, not theoretically. There are changes in chartered accountant regulations related to CA industrial training. The application of theoretical knowledge over practical problems helps to understand the career path of the professional better. From an interview perspective, understanding the manufacturing sector or service sector is essential for a chartered accountant.