CA INDUSTRIAL TRAINING

INTRODUCTION:

The Institute of Chartered Accountants of India has the vision to uplift the members of the profession and at the same time help in the economy building of the country by providing its members to serve the industries of the nation. With the concept of Industrial training, the articled assistants get a birds eye view of working in the industry setup. If any qualified Chartered Accountant plans to get engaged in the industry, he will have a hands-on experience in his industrial training for the same. The opportunity to complete the training from industry helps the article assistants to develop a problem-solving attitude and diversifies their practical exposure into a number of areas. The students get to learn from members of other professions and the spirit of working in a team is also developed while working with big organizations.

SELECTION OF ORGANIZATION FOR INDUSTRIAL TRAINING:

The choices we make define us define our growth and path in life. It is very important to choose the organization for industrial training which suits your goals in life. One should always be clear about where he or she wants to lead his or her professional life. Our Career plays a vital role in life and articles lay a foundation for any Chartered Accountant. One should be very careful when choosing the size, nature, operations, and sector of the organization. We can serve a single industry for 9 to 12 months, so we cant switch from one industry to another. One should choose a company in which he or she will get exposure to overall operations and related work. A work environment or work culture plays a very important role because that will define your growth and learning scale in any organization.

Many students plan to enter a specific group or sector or organization after completion of their course, so this industrial training is an opportunity for them to get an idea about the working and operations of that particular sector. The article assistants can approach any industry directly as per the procedure laid by that particular organization. They can apply for interviews or drop their resumes by email or send it through their reference, etc.

Experience gained in industrial training will help students after qualifying for their final examinations when they actually enter the industry and hunt for their desired jobs. This experience will definitely add something great to their resumes which will count for any job to be pursued.

The following points will throw a light on the important aspects of Industrial Training under the Chartered Accountancy Course:

1. Period of Industrial Training:

The period of Industrial training can be of 9 months to 12 months and it should be mandatorily done only in the last year of articleship period.

        2. The uniqueness of Industrial Training:

Industrial Training is unique in its character due to the varied experience it gives to the article assistant. The experience gained in industrial training is different than the one gained while working in a Chartered Accountant firm for the first 24 months or so. Industrial Training gives a thorough insight into commercial working from within a specific business unit.

        3. Work Culture:

The article assistant will get an idea about the commercial way of working and how the business approaches practically to the theoretical things learned. The largely sized and professionally managed companies function differently as per their set norms for the staff they engage.

       4. Knowledge acquisition:

The most important part of industrial training i.e., the knowledge you gain depends on the kind of organization you choose. Every organization has got different policies, objectives, controls, systems, and procedures. Youre bound to gain knowledge about the sector in which you enroll as an industrial trainee.

       5. Work Exposure:

Industrial Training exposes the articled assistants to management accounting, cost accounting, inventory accounting, management information system (MIS), EDP, etc. The article assistants may gain working knowledge in the fields of corporate laws, taxation, and secretarial practice.

        6. Organizations approved for Industrial Training:

The Institute of Chartered Accountants of India has hosted a list of organizations approved for undergoing industrial training on its official website. The list is displayed region-wise i.e. Western, Southern, Northern, Eastern, and Central. There is an ample number of industries registered with the Institute for imparting industrial training, the article assistant can choose from a variety of options available as per their selection criteria i.e. sector, location, etc.

          7. Training Report:

The Industrial undertaking will be required to maintain training records as specified for an article assistant in the format prescribed by the Institute of Chartered Accountants of India. This training report shall be submitted as an annexure to Form No.105 by the Member in charge of training after completion of industrial training.

           8. Scope of Industrial Training:

A program outline of the scope of training that can be imparted by a member in the industry as per Regulation 51 to an industrial trainee registered under him. The outline is prescribed by the Institute in Annexure V of the Training Guide. As there is a number of different organizations, so this guideline cannot be specifically prepared for every kind of organization, hence a common outline is prepared to bifurcate the different areas of work.

INDUSTRIAL TRAINING PROGRAMME:

The Industrial Training Programme lays down the following outline or guidelines to be adopted by the article assistants who desire to undergo industrial training:

1. Familiarization-

The article assistants should know in and out of any organization before joining over there. One should try and real the public documents of any organization to get an idea about the organization. If the organization has its own manuals, students should go through them to understand the flow of operations, controls, procedures, decision-making processes, etc.

         2. Financial Accounting-

The article assistants should go through the accounting manual of the organization if any. They should try and learn how to record, process, and convert the transactions into meaningful information for decision-making. One should also learn different kinds of accounting like cash, sales, purchases, bank, journals, etc. One should take responsibility for the preparation of interim and final accounts.

           3. Inventory-

Study the inventory policies of the organization, valuation of inventories, periodic verificati,on and reconciliation of inventories. Grab the opportunity to learn the inventory management of any organization.

            4. Finance-

The article assistants should get involved in the financial management of the organization, learn the dealings with banks, working capital management, debtors and creditors management, raising of funds by various modes, preparation of cash flow statements, budgets, etc.

             5. Costing and Budgeting-

The article assistants should prepare cost sheet and budgets in the organization. Understand the relationship between pricing and costing, study various variances, prepare contribution statements, and understand the difference between cost and financial accounting and their reconciliation.

             6. Internal Audit and Operational Audit-

The article assistants should learn the scope and nature of internal and operational audits. They should get engaged in audit processes and preparation of audit reports.

             7. Information Technology (EDP)-

The article assistants should be well aware of the computerized system of any organization. They should learn the practical implementation of the theories studied in this subject while pursuing the course. Systems designs, backup plans, ERP, Hardware-Software, Networking systems, and E-commerce are some of the focus areas in IT.

            8. Company Law & Secretarial Functions-

Preparation of agenda, meetings, conducting meetings, filing ROC forms and returns, and getting adequate knowledge about ROC compliances, and approaches to statutory authorities can be learnt under the secretarial roles.

            9. Taxation-

The article assistants should try to get the working knowledge of various taxes applicable to the organization – both direct and indirect taxes; One should file returns, and forms, learn computation techniques and engage in the assessment and appeals with statutory bodies if any.

            10. Other Operational Areas-

The article assistants should focus not only on the technical part but understand the operations of the business also. This will give practical insight into how the organization is run and how everything is managed including people. Students should participate in discussions, have cordial relations with the staff, and make use of this excellent opportunity.