By:- CA Abhinav

Jain

PROFESSIONAL MISCONDUCT

• CA deemed to be in practice.

• A CA can represent his client before the IT

authorities only in capacity of CA.

• He cannot use other designation.

Disqualification for Member

• Age (>21)

• Unsound mind

• Insolvent

• Convicted an offence

• Removed by ICAI

Enquires for Disciplinary Matters

Complaint (or Suo-Moto Action)

Council (Fit or Unfit) Fit Nothing to do Unfit

Disciplinary Committee (investigate, CA cannot represent him by Lawyer )

No Misconduct Misconduct

Nothing to do Pass the Decision

Penalty for falsely claiming as Member

Claim as CA not being a CA or Claim as Practice not having COP

Penalty

First conviction Subsequent Conviction

Rs. 5,000 to 100,000 Rs10,000 to 200,000/

Jail up to 1 year/ Both

Office of CA

Where name board of firm is affixed (so only a CA

cannot put his firm name at residence because it will construed

as office) or

place of business in professional stationery

Every such office should be in the separate charge of Member

Exception:- Temporary office at hilly area or same premises or within 50 Kms of municipal limit

Schedule of CA Act

First Schedule Second Schedule

4 Part, 20 Clause 3 Part, 14+ Clause

Part clause Part clause

1 12 (CA in practice) 1 10 (CA in Practice)

2 3 (CA in job) 2 4 ( CA General)

3 3 (General) 3 Other Misconduct

4 2 (Other Misconduct)

First Schedule (Part - I)

Clause (1) Allow any person to work in his name (partner,

employee)

(2) Profit sharing, brokerage for securing work (widow, other professionals)

(3) Accept the profit of other professionals (2)

(4) Partnership with NR or CA not in practice

(5) Securing work with service of other than employee, partner

(6) Soliciting Clients in any mean of advertisement

Adv., Note in press (Change in partnership, phone / Classified Adv. in ICAI journal / Empanelment for audit )

First Schedule (Part - I) Clause

(7) Not to advertise professional attainments or

use of designation other than CA

(8) Take NOC from Previous Auditor

(9) Compliance of Sec. 225 of Co. Act

(10) Charge fees as a percentage of Profit (Liquidator, Co-op. Society audit, valuer)

(11) Engage in any business (Director except MD,WTD)

(12) Allow a person to sign the Fin. Statements (Partner)

First Schedule (Part - II) Apply to CA in service

Clause

(1) Pay any share in his emoluments to any person

(2) Accept any part of fees from lawyer, CA, Broker etc. by way of commission or

gratification

(3) Disclose confidential information of employer.

First Schedule (Part - III)

Apply to CA in General

Clause

(1) Not being a fellow style himself as fellow

(2) Doesn’t give information called by institute

(3) Supply knowingly wrong information for clause (6),(7) of Part I of Schedule I

First Schedule (Part - IV)

Apply to both CA in Practice and Job

Clause

(1) Imprisonment for term not exceeding 6

month by any civil or criminal court

(2) Disrepute to the institution

Second Schedule (Part - I) Apply to CA in Practice

Clause

(1) Discloses the information of client (required by any Law)

(2) Certifies any work unless examined made by himself / employee / Partner / Another CA in Practice

(3) Permit to use his name in a manner which lead to belief that he vouches for accuracy.

(4) Audit of its Relative

(5) Fails to disclose Material Fact known to him

Second Schedule (Part - I)

Apply to CA in Practice

Clause

(6) Fails to disclose known Material Misstatement

(7) Negligence to discharge professional work

(8) Fails to obtain sufficient evidence

(9) Fails to apply any Generally accepted audit practices

(10) Fails to keep money of his client in separate Bank A/c or use it as intended (Advance

received)

Second Schedule (Part - II)

Apply to Member of the ICAI

Clause

(1) Contravenes any provision regarding

Articles, Fees, Part time employment

(2) Disclose confidential information of

employer

(3) Provide false information to ICAI

(4) Defalcates money received in his

Professional capacity

Second Schedule (Part - III) Apply to Member of ICAI

• Imprisonment for a term exceeding 6 month

• Member who is employee should discharge

responsibility in proper manner

• Maintain proper books of A/Cs

• Maintain detail of audit handled

• Accept the audit beyond the limit

• Accept fees less than specified

• Accept any other work along with statutory audit of

same entity

• Indebted to co. or has given guarantee exceeding

Rs. 10,000

THE END

Thank You