As a chartered accountant (CA), obtaining practical experience is crucial to developing your skills and abilities in the field of accountancy. This is where the Chartered Accountants Practical Experience Agreement (PEA) comes into play.
A PEA is a formal agreement between a CA student and a registered training employer (RTE). This agreement outlines the responsibilities of both parties during the time the student spends working with the RTE. The agreement is a necessary step towards becoming a CA and is a requirement of the Institute of Chartered Accountants of India (ICAI).
The PEA serves as a blueprint for the training and development of the CA student. It outlines the specific tasks and responsibilities that the student will undertake during their work experience, as well as the type of training and support that will be provided by the RTE.
The agreement must be submitted to the ICAI for approval before the student can begin their practical experience. The ICAI will scrutinize the agreement to ensure that it is in line with their standards and requirements. This approval process can take some time, so it is advisable to start the process early.
Once the agreement is approved, the student can start their practical experience with the RTE. The RTE will provide the student with on-the-job training, supervision, and feedback. They will also be responsible for ensuring that the student has the opportunity to fulfill all the tasks and responsibilities outlined in the agreement.
Throughout the practical experience period, the student will need to maintain a logbook. This logbook will document the tasks that they have completed and the skills that they have developed. It is important to keep the logbook up-to-date as it is a record of the student`s progress and will be assessed by the ICAI at the end of the practical experience period.
At the end of the practical experience period, the student will need to submit their logbook and a report to the RTE. The RTE will review the report and provide feedback to the student. The student will also need to submit a certificate of completion of practical training to the ICAI.
In conclusion, the Chartered Accountants Practical Experience Agreement is a vital step in the journey towards becoming a CA. It provides students with the practical experience they need to develop their skills and abilities in the accountancy field. The PEA is a formal agreement between the CA student and the registered training employer, outlining the responsibilities of both parties during the practical experience period. By fulfilling the requirements of the PEA, students will be well on their way towards achieving their goal of becoming a chartered accountant.