Basic Part Threat

Gegeral Part Chart Ready - No 1

Clause Chart Ready - No 2
Chart Ready C6 - Ready
Chart Ready C7 - Ready
Council General Guidelines Chart Ready

Addition Disclosure to ICAI for fee

Networking
NOCLAR
 First Schedule | Part I - Professional Misconduct in relation to members in Practice
Guilty if he,
C1 Allow any person to practice in his name , except CA in practice as partner or full time employee
C2
Pay/allow or agree to pay or allow dorectly or indirectly any share, commission or brokerage in fee/profit of his professional business to any person otherthan,
1) CA
2) A Partner
3) Retired Partner
4) Legal Representative of Deceased Partner
5) Member of any other professional bodies
6) Other person with prescribed qualification.
For the purpose of rendering such professional services from time to time in or outside India.

Exceptions
Goodwill
Sharing Fee with Govt in special cases
C3 Accept or agree to accept
any part of the profit of the professional work of a person who is not a member of the institute.
C4
Enter in to partnership in or outside India with any person other than the following
CA In Practice
Member of professinal bodies
Person resident outside India entitled to registed as member
Qualification recognised by CG or Council
C5 Secures any professional Business through service of a
person who is not an employee or not his partner or
By means which are not open to a CA

C6
Solicits clients or professional work either directly or indirectly
by Circulers , Advertisements , Personal Communication, Interview or any other means.

Refer Hand Written Notes

C7 1) Advertise his professional Attainments or services
2) Use any designation other than Chartered Accountant.
Refer Separate Chart.
C8 Accept a position as auditor previously held by another chartered accountant or by certified auditor without,
first communicating with him in writing.
C9 Accept an apointment as auditor of a company without first ascertaining the requirements of sec 139 to 142 of companies act 2013.
C10

Charge of offer to charge

Accept or offer to accept
In Respect of any professional employement
Fees which is based on a % of Profit or
Which are contingent upon the finding or result of such employment,
Except as permitted under regulations.

Exceptions
1- Receiver or Liquidator
2- Auditor of a co-operative society
3- Valuer for the purpose of Direct Tax and duties
4- Certain Management consultancy service as decided by council
5- Certain Fund Raising service
6- Debt recovery service
7- Service related to cost Optimisation
8- Any other service as council decide - Acting as Insolvency Professional, Non Assurance Service to Non Audit Clients
C11 Engage in any Business or Profession other than CA unless permitted by council,
 General Permission
1- Director in company not being WTD or MD unless he or any of his partner is interested in such company as an auditor
2- Employement under CA in Practice
3- Private Tutorship
4- Authorship of Books and Articles
5- Holding agency of LIC for limited purpose of Renewal commission.
6- Attending classes and appearing for any examination.
7- leadership office for Charitable-educational or other non commercial organisations.
8- Acting as Notary Public , Justice of the Peace, Special Executive Magistrate.
9- Part Time tutorship under the coaching organisation of Institute.
10- Valuation of Papers, acting as paper setter, head examiner , moderator for any examination
11- Editorship of Professional Journals.
12- Acting Surveyor and loss assessor under the insurance act
13- Recovery consultant in the banking sector
14- owning agricultural land and carrying out agricultural activity.
15- Holding of Public elective office such as M.P, MLA etc

For any other work CA in practice need Specail Permission

C12 Guilty- if he allow a person not being a member of the ICAI in practice or a member not being his partner

to sign on his behalf or on behalf of the firm

 Any General document can be signed in which attestion is not involved
Examples
1- Issue of Questionnaire
2- Draft Observations
3- Audit Schedule
4- Cash Verification/ Physical verification of stock
5- Bill/Invoice Raise
6- Routine Tax Matter attending

Not Allowed Examples

1- Certificates
2- Financials Sign
3- Assurance in Any Matter

First Schedule | Part II - Professional Misconduct in relation to members in Service

C1 Pay or allow or agree to Pay or allow

Directly or Indirectly to any person
any share in the emoluments of the employment undertaken by him.

C2 Accept or Agree to Accept

any part of fees, profit or gains from
a lawyer , a chartered accountant or broker engage by such company, firm or person or
by way of commission or gratification

First Schedule | Part III - Professional Misconduct in relation to members Generally

Guilty if he,

C1 Not being a Fellow of the Institute but act as a fellow of the Institute

C2 Does not supply the information called for

Does not comply with the requirement asked for,by

The Institute , Council or any other committees , Director(discipline), Board of Discipline, Disciplinary Committee, QRB or the Appellate Authority
C3
1- While Inviting Professional work from another CA
2- While Responding to Tenders or enquiries
3- While Advertising through writeup or as provided in C6 & C7

Gives Information knowing it to be false.

First Schedule | Part IV - Other Misconduct in relation to members Generally

Guilty if he,
C1 Is held guilty by any civil or criminal court for an offence which is punishanle with impriosonment for a term not exceeding six months.

If punishment is exceeding six months than he will be guilty under Part III of second Schedule. (Only one Clause)

C2 In the Opinion of Council, brings disrepute to the profession or the Institute as a result of his action whether or not related to his professional work.
THE SECOND SCHEDULE
Part I: Professional Misconduct in relation to CA in practice
1 Discloses info acquired in course of his professional engagement to any person other than his client without consent of his client or otherwise than as required by any
law for the time being in force.
2 Certifies/submits in his name or in name of his firm report of an examination of FS unless examination of such statements & related records has been made by him/by a
partner/an employee/by another CA in practice.
3 Permits his name/name of his firm to be used in connection with an estimate of earnings contingent upon future transactions in manner which lead to belief that he
vouches for accuracy of the forecast.
4 Expresses opinion on FS of any business or enterprise in which he, his firm, or partner in his firm has substantial interest
5 Fails to disclose material fact known to him not disclosed in FS but disclosure is necessary in making FS not misleading
6 Fails to report a material misstatement known to him to appear in FS with which he is concerned in a professional capacity.
7 Does not exercise due diligence, or is grossly negligent in the conduct of his professional duties.
8 Fails to obtain sufficient info necessary for expression of an opinion/its exceptions are sufficiently material to negate expression of an opinion.
9 Fails to invite attention to material departure from generally accepted procedure of audit applicable to the circumstances.
10 Fails to keep moneys of his client other than fees/remuneration/money meant to be expended in a separate banking account or to use such moneys for purposes for
which they are intended within a reasonable time.
Part II: Professional Misconduct in relation to Chartered Accountant in Generally
1 Contravenes any of the provisions of this Act or the regulations made there under or any guidelines issued by the Council
2 Being an employee of co, firm or person, discloses confidential info acquired in course of his employment except as & when required by any law/except as permitted by
employer.
3 Includes in any info, statement, return/form to be submitted to ICAI, Council/any Committees, Director, Board of Discipline. Disciplinary Committee, Quality Review
Board or the Appellate Authority, any particulars knowing them to be false.
4 Defalcates/embezzles money received in his professional capacity
Part III: Other misconduct in relation to members of the Institute in Generally
1 Held guilty by civil/criminal court for an offence which is punishable with imprisonment for a term exceeding 6 months.
Clause 7 Summary
Write-up Refer Separate Notes
Permission to Only mention for Recognised by the counciil
mention
qualifications of
certain
Institutions

Other Designation Exception

1- Insolvency Professional
2- Registered Valuer

Also on visiting card CA can give one QR code for all the basic information like
Name
Office Address
Residential Address
Contact Details
Emil Id
Firm Website

Date of setting-up Only on Website by specific PULL Request

practice
Practice as Can not used Simultaneously
Advocate
Same as above
Practice as
Company
Secretary/Cost
Management
Accountant
Not Allowed. A CA can print name of all the firms in which he is partner on his personal letter
Mention of Firm
head.
name except on
Professional
Documents
Should not be udesired Publicity
Notice in the
Press relating to
the Success in an
Examination
Reports and Only serve purpose and should not be on letter head of firm.
Certificates
Not in the form of Advertisement. Can advertise for National importance position elections
Appearance of but only with name CA, firm name not allowed
Chartered
Accountants on
Electronic Media
(including
Internet
Undue prominence should not given to the name of the Chartered
Organising
Accountant in any booklet or document issued in connection therewith
Training Courses,
Seminars etc. for
his staff
Writing Articles or Letters to Only Name and CA
Press
use of glow signs or lights on large-sized boards as is used by traders or
shopkeepers is not permissible.

At Office = Firm Name board and CA name can be written

At Office = Only Name Plate , firm board not allowed
Size of Sign Board
expertise,
specialization and knowledge in any particular field or other appellations or
adjectives are not published with his name.
Public
Announcements name of the firm of
with details of Chartered Accountants in which the member is a partner, should not be given.
Directors
Use of Logo - Common CA ICAI Logo can only be used
Logo
Council General Guidelines
<Guidelines under CA Act 1949
1- Short Title and Commencement <Applicable to all members

2- Conduct of a member being a employee <Shall Exercise Due Diligence

<Shall Not grossly negligent in the conduct of his duties

3&4- Appointment of a member as cost auditor <Omitted

and opinion on the financial statement when there
is substantial interest

< Cash Book

< Ledger
5- Maintenance of Books of Account
If Member will not maintain books of account even the income is less than as
prescribed u/s44AB of the IT act,1961 (Tax Audit)

<A Member in practice shall not accept in a FY more than the Specified number
of tax audit assignments.
<In Case of Firm specified number is for every partner in firm.
<Specified number of Audit = 60 Tax Audit Assignment.

<If one person is parner in more than one firm the total number of audit of that
person shall not be more than specified number.

< Audit Conducted under section

44AD (declare income on presumptive basis)
44ADA1 (scheme of presumptive taxation of profits and gains arising from
professions whose annual gross receipts are under Rs 50 lakh.)
44AE (eligible assessee owns less than 10 light goods carriages)
44AF (special provisions for computing profits and gains of retail business.)
Shall not be taken for the purpose of reckoning the specified number of tax
6- Tax Audit Assignments u/s 44AB of the IT Act audit assignments.

< Specified Number of Audit - General points

1- Each Year audit would be count as separate assignment
2- Head office + Branch = Will be counted as 1 Audit
3- Multiple Branches of same concern - Will be counted as 1 audit
4- CA In part time practice = will not be counted as partner of firm for the
purpose of counting number of tax audit
5- A CA in practice will maintain record of tax audit assignment in each
financial year.
6- Limit of Tax Audit in a firm can be distributed in partner by any manner even
one partner can sign all the tax audit report.

CA shall not accept appointment as auditor under company act if undisputed

audit fee and other various other statutes not paid.
7- Appointment of Auditor in case of non payment
of Undisputed audit fees <Exception - In case of Sick Unit the above prohibition shall not be applicable.
<Sick Unit- A Unit registered for not less than 5 years , which has at the end of
any financial year accumulated losses >= its entire net worth.
 As per Council Guidelines a CA can accept 30 company audit including all the
private company except,
1- One Person company
2- Dormant company.

Link with Company Audit section 141(3)(g)

A CA can accept 20 company audit excluding
8- Specified Number of Audit Assignment A- Pvt Company having paid up capital 100cr or less (No Default of sec 92 and
137, filling of annual return and Filling of Financial Statement.)
B- One person company
3- Small Company
4- Dormant Company

company having turnover of Rs50crore or more

Other service sec 2(2)(iv) fees are higher the fee for statutory audit
9- Appointment as Statutory Audit
Shall not accept the stautory Audit or fee for other service should be less than
Statutory audit fees. Remember Section 144 as well.

1- A member in Practice
2- Partner of Firm
3- Firm
4- Relative of Member or partner

Shall Not Accept appointment as auditor while,

10- Appointment of auditor when he is indebted to
a concern A- Indebted to the concern
B- Given any guarantee
C- provided any seccurity
in connection with the third person to the concern for Limit

X- Limit Fixed in the Statute

Y- Other Cases = Rs1,00,000

Link with Company Audit and Tax Audit etc

11- Direction in case of Unjustified Removal of

Auditors Not accept audit in case of unjustified removal

13- Guidelines for Tender Already covered

14- UDIN Generate UDIN for all the attestation work to curb the malpractice of false
certification.

15- Guidelines fo Networking Covered in Ch 19

16- Logo Guidelines Only follow ICAI Logo.

>to provide other services as defined in sec 2(2)(iv) , A CA can hold office as
MD, WTD or manager of body corporate.
>He should comply with C6 and C7 of part 1 of Schedule 1 of CA Act , 1949
17- Guidelines for Corporate form of Practice > Comply with Ethical Requirement
A- Comply with Section 144 Service , do not provide sec 144 service through
company along with statutory audit
B- Celling of Non Audit Fee- should be less than Statutory Audit.
C- Comply with C6 & C7

Guidelines for Advertisement

 A- Honest & Truthfull
B- No Exaggerated Claims
C- No Disparaging reference or comparisons
D- No Disrepute to profession
E- No Reference of client and fee charged
1- Writeup F- No Information about achievement/awards (except award given by CG or SG
or Regulatory body)
G- Catcy word not allowed
H- Membership number and firm registration number is mandatory
I- Font size Maximum 14
J- No violation of CA Act 1949 along with code of ethics and guidance of the
council.

2- Website Already covered

Consultancy service can be provided through portals of third party.

3- Online Third Party Platform The name of Chartered Accountant is not permited on website.

4- Application base Service provider Aggregators Not Allowed

Allowed
A- Entry should not appear in any other section except that of chartered
accountant.
5- Publication of name or the firm name in
B- Member or firm should belong to the same town or city
Telephone Directories
C- Order should be Alphabetical
D- Entry should not be different or giving the impression of Advertisement
E- Entry should be open to all chartered accountant of the town or city
F- Member can also include their name in trade or social directories

6- Special Directories for limited circulations Allowed

Exemption for Advertisement

a)- For Recruting staff for own office
7- Exemptions b) - For Recruting staff for client or for dispose of business or property
c) - Sale of business or property , acting as trustee, liquidator or receiver

No advertisement like well known firm , no promotion

8- Branch Audit Brach audit should not be conducted by firm if they are 10 or more members but
it should be conducted by local firm of auditors of less than 10 members.

9- Joint Audit In case of Large company - Less than 5 members firm should be joint auditor
and big firm should not object the same.

10- Ratio between Qualified and Unqualified Staff 1:05

11- Disclosure of Interest by Auditor in other firm He should disclose all the income from all the different firm or as proprietor.

12- Recommended Minimum scale of Fees Follow Minimum fees guidance according to cities