What are Professional Misconducts of a Chartered Accountant – Part 1

Don’ts

1. A Practicing Chartered Accountant abstain from soliciting clients or professional work either directly or indirectly by circular, advertisement, personal communication, or interview or by any other means.

2. A member in practice, engaged in Coaching/ Teaching activities in accordance with general and specific permission of the Council should abstain from advertisement of such Coaching / teaching activities, as it may amount to indirect solicitation, as well as solicitation by any other means.

3. The Council has also considered the question of permitting entries in respect of chartered accountants and their firms under specified groups in telephone/trade directories subject to some restrictions

4. A Chartered Accountant in practice cannot accept a position as auditor previously held by another Chartered Accountant without first communicating with him in writing. It applies to all types of audits viz., statutory audit, tax audit, GST audit, internal audit, concurrent audit or any other kind of audit.

5. In case the undisputed audit fees for carrying out the statutory audit under the Companies Act, 2013 or various other statutes have not been paid, the incoming auditor should not accept the appointment unless such fees are paid.

6. If a Chartered Accountant in practice or a firm of Chartered Accountants has more than one office in India, each one of such offices should be in the separate charge of a member of the Institute

7. A Chartered Accountant in practice shall not commit any professional misconduct by rendering such services includes both personnel recruitment and selection and conducting training programmes and work-studies for and on behalf of the client.

8. A Chartered Accountant in practice cannot work as a Collection Agent

9. A Chartered Accountant in practice can give public interviews. While doing so, due care should be taken to ensure that such interviews or details about the members or their firms are not given in a manner highlighting their professional attainments.

10. Professional Misconduct also includes Retention of books and documents of the client and failure to return these to the client on request without a reasonable cause.

Do’s

1. A member can respond to tenders or enquiries issued by various users of professional services or organizations from time to time and securing professional work as a consequence.

2. A member may advertise changes in partnerships or dissolution of a firm, or of any change in the address of practice and telephone numbers subject to conditions.

3. A member is permitted to issue a classified advertisement in the Journal/ Newspaper of the Institute intended to give information for sharing professional work on assignment basis or for seeking professional work on partnership basis

4. Members should communicate with a retiring auditor in such a manner as to retain in their hands positive evidence of the delivery of the communication to the addressee. In case of assignments done by other professionals not being Chartered Accountants, it would also be a healthy practice to communicate.

5. If a tax auditor is appointed for conducting a special audit under the Income-tax Act, 1961 communicates with the members who has conducted the statutory/tax audit.

6. A members/firm be allowed to open temporary offices in a city for a limited period not exceeding three months in a year.

7. A Chartered Accountant in charge of the branch of another firm should be associated with him or with the firm either as a partner or as a paid assistant. If he is a paid assistant, he must be in whole time employment with him

8. A Chartered Accountant or a firm of Chartered Accountants can institute or sponsor prizes, provided that the designation “Chartered Accountant”, is not appended to the prize

9. Advertisement for Silver, Diamond, Platinum and Centenary celebrations of the firms has been permitted to be published in any newspaper or in the newsletters.

10. A Chartered Accountant in practice can give public interviews. While doing so, due care should be taken to ensure that such interviews or details about the members or their firms are not given in a manner highlighting their professional attainments

Information source is from ICAI website under ‘know your ethics’, in case of any queries and further clarity kindly refer to institute website www.icai.org.in.

Also Read: What are Professional Misconducts of a Chartered Accountant PART- 2