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The
following are clauses mentioned in part I of schedule I: Schedule
I: Part I:
Professional misconduct in relation to
Chartered accountants in practice: Clause 1:
“Allows any person to practice in his name as a Chartered
accountant in practice and is in partnership with or employed by
him” It is to
protect the public against unqualified accountants practicing as
qualified CA’s. Clause 2:
“Pays or allows or agrees to pay or allow, directly or
indirectly, any share, commission or brokerage in the fees or
profits of his professional business, to any person other than a
member
of the Institute or
a partner or a retired partner or the legal representative of a
deceased partner, or a member of any other professional body or
with such other persons having such qualification as may be
prescribed, for the purpose of rendering such professional
services to time in or outside India;” Note:
1.
Widow can continue to receive a share of firm if partnership agreement
contains a provision. However, the widow of a deceased member,
whose professional work is mainly income tax representation,
cannot receive a monthly lump sum payment for a period of 5
years or a specified percentage of income.
2.
Now onwards, on death of sole proprietor, the name of the firm will be
kept in abeyance by the institute for one year so that to enable
the widow of deceased to sell g/w of the firm.
“Partner” includes a person residing outside India with whom a
chartered accountant in practice has entered into partnership
which is not in contravention of item (4) of this Part.
Clause 3:
“Accepts / agrees to accept any part of the profits of the
professional work of a lawyer, auctioneers, broker or other
agent who is not a member of institute.”
Clause 4 :
“Enters into partnership with any person other than C.A. in practice or a
person resident without India who but for his residence would be
entitled to be registered or whose qualification are recognized
by Govt./ Council / provided C.A. shares in fee / profits of
business of partnership both within and without India.”
Clause 5:
“Secures, either through the services of a person who is not qualified to
be his partner or by means which are not open to a
Means “A man must stand
erect, and not be kept erect by others”
A c.a must seek work not
through agency, but by the confidence he is able to inspire by
his reputation. This type of canvassing are regarded as
unethical and are prohibited.
Clause 6:
“Solicits clients or professional work either directly or
indirectly by circular, advertisement, personal communication or
interview or by any other means.”
1.
Adv. And note in press:
As a general rule he can’t advertise
2. Empanelment for allotment of
audit/professional Work
However as per new notification, a
3.
Publication in telephone
/ other directories
It should not
impress like publicity. It should be in normal letters and in
logical order.
4. Responding to Tenders,
Adv. / Circulars
5. Issuing Hand Bills:
To persons other than clients such as changes in tax.
6. Publication of Books
and Articles:
No indication as to association with any firm of
7. Issue of greeting
cards or invitation:
Designation and name of
the firm may be printed on invitation provided sent to clients
relatives and close friends.
8. Roving inquiries:
No sending of such inquiries to prospective clients.
9. Seeking work from
professional colleagues:
Not permissible except in
journal. 10. Public Interview:
No publicity, details about firm /
professional attainments.
11. Web-site:
i.
CA / CA firm free to create own website (no
std. Format, no restriction on color).
ii.
Website runs on ‘pull’ mode not on ‘push’.
iii.
Can mention Website Address on professional.
Stationery.
iv.
Specific.’ pull’ request for :
a. Nature of services rendered.
b.
Area of Exp. of partners.
c.
Area of exp. of employees.
d.
No. of articled clerks.
e.
Nature of assignment handled.
Can’t give:
(i)
Name of clients and fee charged;
(ii)
No logo;
(iii)
No photograph(however passport size photograph of member can be given)
(iv)
No Adv.
(v)
Ref. About website (other than that of ICAI and Govt. related.).
i. Articles etc. of professional interest can be given.
i.
Bulletin Boards can be provided.
ii.
Chat room between client and CA is permitted.
iii.
Listing on suitable search engine is permitted
if restricted to CA, Indian CPA etc.
iv.
Details shouldn’t solicit client or adv.
v.
Secrecy of matters of clients through website.
vi.
If he is member of a professional body or
chamber of commerce offering listing
® permitted.
vii.
Strict compliance with guidelines is required.
viii.
Address of website can be diff. from name of
the firm but should be as near as possible to such name of CA/CA
firm).
ix.
Address of website
® intimation to ICAI along with annual
membership form.
x.
Mention date up to which it is updated.
They can provide
services through other websites also provided contact address of
CA and professional achievement is not given.
Clause 7:
“Advertises his professional attainment or
services or uses any designation or expression other than
Chartered Accountant on professional. documents, visiting cards,
letter heads or sign boards unless it be a degree of an
University established by law in India or recognized by the
Central Government or a title indicating membership of ICAI or
any other institute recognized by Central Govt./by Council.
“
The following are some misconduct:
a.
He can’t use words like income-tax consultant, cost consultant or
management consultant.
b.
Can’t use ‘Member of Parliament’, etc. in addition to that of Chartered
Accountant.
c.
Use of logo, not permissible at all.
d.
Persons eligible otherwise, subject to permission may practice as
advocates but can’t use designation “Chartered Accountant” and
“Advocate” simultaneously.
e.
Photograph and brief particulars in magazine (No payment/No Adv.)
f.
Success in exams may be given without any undesirable publicity with
respect to member/firm/clerk.
g.
Use of glow sign-board/light or large size board is not proper. He may
have a name board of himself at residence but not of a firm.
Clause 8:
“Accept a position as Auditor previously held by
another chartered accountant or restricted state auditor without
first communicating with him in writing.”
Clause 9:
“Accepts
an appointment as auditor of a company without ascertaining from
it whether requirement of section 225 (companies act), in
respect of such appointment have been duly complied with.”
Clause 10:
“Charges/offers to change
accepts/offers to accept with respect to any professional
employment, fee based on a % of profits or which are contingent
upon findings or results of such employment, except in cases
which are permitted.”
Not contingent if fixed by court/public authority.
Exception (May by % of profits):
(i)
Receiver or liquidator (% of realization).
(ii)
Auditor of Co-op. Society (% of paid up/working
capital, gross/net income/profit.
(iii)
Valuer.
Clause 11:
“Engage
in any Business (occupation other than profession of
However, he can always
become director (not M.D.) in a company provided he/his partner
is not interested in such co., as an auditor
“General
Permission”
(i)
Employment under
(ii)
Private tutorship.
(iii)
Authorship of Books/Articles.
(iv)
Holding Life Insurance Agency license (Renewal
Commission.).
(v)Attending class and appearing in any exams.
(vi)
Holding public elective office (M.P., M.L.A.)
(vii)
Honorary office of charitable – educational
institute.
(viii)
Notary public, Justice of peace, Special
Executive Magistrate and like.
(ix)
Part time tutorship under coaching organization
of institute.
(x)Valuation of paper, paper setter, head-examiner or moderator for any exam.
(xi)
Editorship of professional journal.
(xii)
Acting as Surveyor/Loss Assessor under
Insurance Act.
(xiii)
Recovery consultant
(xiv)
Insurance brokerage.
“Specific Permission”
(1)Full time/Part time employment in Business concerns provided he/his
relative not having sub. Interest.
(2)Full time/Part time employment in non-business concern.
(3)Managing Director/Whole-time Director concern.
(4)Interest In family Business concern.
(5)Interest. In agriculture/allied activities with help of hired labour.
(6)Interest In any educational institute.
(7)Part time/Full time lectureship for courses other than
(8)Part time/Full time tutorship under any educational institute other than
coaching org. of institute.
(9)Editorship of journal other than professional one.
(10)
Any other Business/Occupation considering it to
be necessary to take permission.
However, they may act as liquidator trustee, executor, etc., or may take
an appointment made by Govt./Court/Legal Authority in
professional. Capacity provided it is not a salary-cum-full-time
basis.
If not designated as M.D. or W.T.D. but entrusted with whole/substantially
the whole of management of affairs of company, deemed to be M.D.
IT IS FURTHER REOLVED
that the general and specific permission
granted by the Council is subject to the condition that
–
(i)
Any
member engaged in
any other business or occupation, in terms of general or
specific permission granted as per Appendix NO. (9) shall not be
entitled to perform any attest function except in the following
cases:
(a)
Authorship of books and articles.
(b)
Holding of Life Assurance Agency License for the limited purpose of
getting renewal commission.
(c)
Attending classes and appearing for any
examination.
(d)
Holding of public elective offices such as M.P., MLA & MLC.
(e)
Honorary office-bearer ship of charitable, educational or other
non-commercial organizations.
(f)
Acting as Notary Public, Justice of the Peace,
Special Executive Magistrate and the like.
(g)
Part-time tutorship under the Coaching Organization of the Institute.
(h)
Valuation of papers, acting as paper-setter, head-examiner or a moderator
for an examination.
(i)
Editorship of professional journals – (not in
employment)
(j)
Acting as surveyor and Loss Assessor under the
Insurance Act, 1938 (not in employment).
(k)
Acting as Recovery consultant in the Banking Sector (not in employment)
(l)
Any coaching assignment organized by the
Institute, its Regional Councils and Branches of Regional
Councils.
(m)
Engagement as Lecturer in an University, affiliated college, educational
institution, coaching organization, private tutorship, provided
the direct teaching hours developed to such activities taken
together do not exceed 25 hours a week.
(n)
Engagement in any other business or occupation permitted by the Executive
Committee from time to time.
(o)
Insurance brokerage.
(ii)
A member who is not entitled to perform attest
function shall not be entitled to train articled clerks.
E.g.:
A
Clause 12:
“Allows
a person not being a member of the institute or a member not his
partner to sign on his or his firm behalf, any B/S, P&L A/c.
report of financial statement” |
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