PRESENTED BY,NITIN GUPTA( STUDENT OF ICAI )NITINGUPTA21832@GMAIL.COM

Who can be CA ?

A person who cleared : Final Examination, Completed his Article Training & GMCS.

Disqualification :Age < 21 years; orUnsound Mind and as per competent court; orUndischarged Insolvent ; orDischarged Insolvent but has not obtained court certificate; orUnless pardoned by CG (I) offence of moral turpitude and /or (II) Non technical offence committed in his professional capacity; orRemoved by Council if found guilty of Professional or other misconduct

Status of Member : Member in Practice (must have certificate of Practice),or Member in Service, or Member (just having degree )

Member Deemed to be in Practice

An associate or a fellow of the Institute who is a salaried employeeof a chartered accountant [in practice] or [a firm, of such chartered accountants] shall, notwithstanding such employment, be deemed to be in practice for the limited purpose of the training of articled [assistants].

When he in consideration of remuneration : Engage himself in the practice of accountancy, or Offer to perform Audit and related services, or Hold himself out to the Public as an Accountant, or Render Professional Services or assistance in accounting procedure, or renders such other services as, in the opinion of the Council, are or may be rendered by a chartered accountant

Misconduct :The expression “professional or other misconduct” shall be deemed to include any act or omission provided in any of the Schedules, but nothing in this section shall be construed to limit or abridge in any way the power conferred or duty cast on the Director (Discipline).

Disciplinary mechanism :Council (Group of elected member )

( By giving notification establish)

Disciplinary Directorate (headed by officer–Director(Discipline)

On receipt of any information or complaint

he shall arrive at a prima facie opinion that if guilty related to

Schedule I Schedule II or Both

Matter place to

Board of Discipline Disciplinary committee

Cont….

Board of Discipline Disciplinary committee

If found Guilty

1. Reprimend the Member 1. Reprimend the Member2. Remove the name of the member from register upto 3 month

2. Remove the name of the member from register permanently or for any duration

3. Impose fine upto Rs. 100000 3. Impose fine upto Rs. 500000

Any member can prefer an appeal within 90 days

Appellate Authority

( It can confirm ,modify or set aside the order or act as per the power given .)

Cont….

Content of schedule :MISCONDUCT First Schedule Second Schedule

Professional Part I -(12 Clause) Part I -(10 Clause)

Professional Part II -(2 Clause) Part II -(4 Clause)

Professional Part III -(3 Clause)

Other Part III -(2 Clause) Part III

Let us see each Clauses……

1ST Schedule

Clause 1 :Misconduct :Allowing any other Person to Practices in his own name .Exceptions : Other Person CA in Practice AND Is in partnership or in his Employment.

Part 1

Clause 2 :Misconduct : Pays /allows or agree to pay/allow Directly or indirectly Any share, commission or brokerageIn the fee’s or profitof his Professional BusinessWith any one.

Cont….

1st schedule part I

Exceptions : ICAI member; Partner;Retired partner;Legal representative of deceased partner ,only if deed provides ;Member of other specified Professional Bodies;Specified qualified persons.

Clause 3 :Misconduct : If accept or agree to

accepts Any part of profit of professional

work From Non MemberException : ICAI Member ; Member of other Specified

Bodies ; Specified Qualified Persons.

1st schedule part I

Clause 4 :Misconduct : If enter into Partnership with any person.Exception : ICAI Member ; Member of other Specified Bodies ; Specified Qualified Persons.

1st schedule part I

1st schedule part I

Clause 5 :Misconduct : If Secures work from non members.Exception : Employee; Partner Other open means.

1st schedule part I Clause 6 : Misconduct : Solicitation of clients or Professional workSolicitation can be direct or indirect throughcircular advertisement ,personal

communication, interview, etc. Exceptions : work from other CA in practice;Responding to tenders or enquiries.

1st schedule part I Clause 7: Misconduct : Advertising of

Professional attainments or services ,or using unapproved or wrong designationsExceptions : Advertisement through write up is

permitted. ( subject to guidelines issued by

council )

Clause 8 :Misconduct : If no written communication with

previous auditor before accepting the

position as anAuditor.

1st schedule part I

1st schedule part IClause 9 :Misconduct : If does’nt ascertain the compliance of sec. 224 & 225 in respect of his appointment.

1st schedule part I

Clause 10 : Misconduct : If fee’s charged on % of Profits ; Contingent Findings.Exceptions : Liquidator /Receivers Auditors of co operatives society D.T. Valuer .

1st schedule part I

Clause 11 : Misconduct : Engaging in other

business /occupation having full time COP + Salary.Exceptions : ICAI Permission Director’s Simplicitor’s Employment in CA Firm Genral Permission under Regulation 190A.

1st schedule part I

Clause 12 : Misconduct : Allow a Person other than

CA ,orCA ,not his PartnerTo sign on his/his firm’s behalf any balance sheet ,P/L ,Report or financial staementexceptions : signing documents not

containingexpression of opinion

1ST Schedule

Clause 1 :Misconduct :paying /allowing to

any person, share in employment emoluments.

Part II

Clause 2 :Misconduct : Accepts or agrees to

accept any part of fee’s or profits or gainsfrom a lawyer ,C.A , broker, agent,customer,of such employerby way of commission or gratification.

1st Schedule part II

1ST Schedule

Clause 1 :Misconduct : Not F.C.A but act

as F.C.A

Part III

Clause 2 :Misconduct : doesn't supply

information to ICAI/ comply requirements asked

by ICAI.

1ST SCHEDULE Part III

Clause 3 :Misconduct : violation of clause 6 /7

of part IOf this schedule.

1ST SCHEDULE Part III

1ST Schedule

Clause 1 :Misconduct : If he is held guilty by

any civil or criminal court for an offence

which is punishable with imprisonment for a

term not exceeding six month.

Part IV

Clause 2 :Misconduct : If in the opinion of council , bring disrepute to the profession or the Institute as a result of his action whether or not related to his profession work.

1st Schedule part IV

2ND Schedule

Clause 1 :Misconduct : Disclosure of

information acquired during professional

engagement.Exception : Client’s Consent Law Requirement

Part I

2ND Schedule

Clause 2 :Misconduct : Certification

/Submission of report on F.S without examination.Unless Examined by him his partner his employee’s another C.A in practice.

Part I

2ND Schedule

Clause 3 :Misconduct : Not vouching the

accuracy of forecasts.

Part I

2ND Schedule

Clause 4 :Misconduct : Expression of opinion

on F.S of an entity with presence of sustantial

interest (either himself /his firm/his partner).

Part I

2ND Schedule

Clause 5 :Misconduct : Failure to disclose

“Material Fact” .

Part I

2ND Schedule

Clause 6 :Misconduct : Failure to report

“Material Misstatement”

Part I

2ND Schedule

Clause 7 :Misconduct : Doesn't exercise Due

Diligence, or Grossly Negligent of his duties.

Part I

2ND Schedule

Clause 8 :Misconduct : Fails to obtain

information for expression of opinion.

Part I

2ND Schedule

Clause 9 :Misconduct : Failure to invite

attention to any material departure to GAAP.

Part I

2ND Schedule

Clause 10 :Misconduct : Failure to keep client

money in a separate bank account, orUse such money within reasonable

time.(other than fee /remuneration, even

advance)

Part I

2ND Schedule

Clause 1 :Misconduct : Contravention of any

provision ofthis Act , Regulations or any

guidelines issued by council.

Part II

2ND Schedule

Clause 2 :Misconduct : Being employee

disclose confidential information without

consent /legal requirement.

Part II

2ND Schedule

Clause 3 :Misconduct : Submit false

information to ICAI/its constituents.

Part II

2ND Schedule

Clause 4 :Misconduct : Defalcates or

Embezzles money received in professional capacity.

Part II

2ND Schedule

Misconduct : If he is held guilty by any civil or criminal court for an offence which is punishablewith imprisonment for a term exceeding six months.

Part III