Industrial training under ICAI curriculum
The Institute of Chartered Accountants of India, as part of its objective of providing to the industries, members with adequate knowledge and background of industrial functioning, conceived the concept of industrial training. The concept envisages the preparation of trainees, who intend to build their careers in industries, after becoming chartered accountants, in a manner mutually beneficial to trainees as well as Industries.
Training in an industrial/commercial/financial environment provides the trainees with the opportunity to develop a problem-solving attitude and to have an insight into the functioning of the accounts department. It also diversifies their practical experience and helps them in developing the attributes of teamwork and correlation with members of other professions and disciplines. It is intended to provide the trainees with a new dimension to their experience. This would necessarily involve exposure of trainees to the entire gamut of activities of industrial establishments in a phased and systematic manner. Exposure to the working environment of a large commercial organization will give them an integrated view of its operations.
Eligibility and other conditions for undergoing Industrial Training
i. An articled assistant who has passed the Intermediate (IPC) Examination / Professional Competence Examination/ Professional Education (Examination - II) or Intermediate examination can serve as an industrial trainee in any of the financial, commercial, industrial undertakings as may be specified by the Council or such other institution or organization as may be approved by the Council from time to time.
ii. Articled assistant before proceeding for Industrial Training has to intimate his principal at least three months before the date on which such training has to commence.
iii. Period of Industrial Training may range between a minimum of nine months to a maximum of twelve months during the last year of the prescribed period of practical training.
iv. The Industrial Training shall be received under a member of the Institute. An Associate who has been a member for a continuous period of at least three years is entitled to train one industrial trainee and fellow is entitled to train two industrial trainees at a time, whether such trainees have articled assistants or audit assistants.
v. An agreement of training is to be entered in the approved form i.e. Form No. 104
vi. On satisfactory completion of industrial training, the principal has to issue a service certificate in the approved form i.e. Form No. 105.
Industrial training also offers an opportunity for the trainees to take part in specialized accounting exercises. Thus, for instance, the closing of accounts provides an opportunity for them to acquire the skills necessary as a concomitant to the theoretical knowledge which they have acquired earlier. Industrial training may also expose the trainees to management accounting, cost accounting, management information system, EDP etc. It also provides an opportunity for them to participate in the work relating to corporate laws, taxation and secretarial practice.