PRESENTED BY, NITIN GUPTA ( STUDENT OF ICAI )

Who can be CA ? A person who cleared :  Final Examination,  Completed his Article Training &  GMCS.

Disqualification :  Age < 21 years; or  Unsound Mind and as per competent court; or  Undischarged Insolvent ; or  Discharged Insolvent but has not obtained court certificate; or  Unless pardoned by CG (I) offence of moral turpitude and /or (II) Non technical offence committed in his professional capacity; or  Removed 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 employee of 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 2. 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 Impose fine upto Rs 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……

1 ST 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 brokerage In the fee’s or profit of his Professional Business With any one. Cont…. 1 st 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 Member Exception :  ICAI Member ;  Member of other Specified Bodies ;  Specified Qualified Persons. 1 st schedule part I

Clause 4 : Misconduct : If enter into Partnership with any person. Exception :  ICAI Member ;  Member of other Specified Bodies ;  Specified Qualified Persons. 1 st schedule part I

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

1 st schedule part I Clause 6 : Misconduct : Solicitation of clients or Professional work Solicitation can be direct or indirect through circular advertisement,personal communication, interview, etc. Exceptions :  work from other CA in practice;  Responding to tenders or enquiries.

1 st schedule part I Clause 7: Misconduct : Advertising of Professional attainments or services,or using unapproved or wrong designations Exceptions :  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 an Auditor. 1 st schedule part I

Clause 9 : Misconduct : If does’nt ascertain the compliance of sec. 224 & 225 in respect of his appointment.

1 st 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.

1 st 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.

1 st schedule part I Clause 12 : Misconduct : Allow a Person other than CA,or CA,not his Partner To sign on his/his firm’s behalf any balance sheet,P/L,Report or financial staement exceptions : signing documents not containing expression of opinion

1 ST 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 gains from a lawyer,C.A, broker, agent,customer,of such employer by way of commission or gratification. 1 st Schedule part II

1 ST 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. 1 ST SCHEDULE Part III

Clause 3 : Misconduct : violation of clause 6 /7 of part I Of this schedule. 1 ST SCHEDULE Part III

1 ST 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. 1 st Schedule part IV

2 ND Schedule Clause 1 : Misconduct : Disclosure of information acquired during professional engagement. Exception :  Client’s Consent  Law Requirement Part I

2 ND 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

2 ND Schedule Clause 3 : Misconduct : Not vouching the accuracy of forecasts. Part I

2 ND 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

2 ND Schedule Clause 5 : Misconduct : Failure to disclose “Material Fact”. Part I

2 ND Schedule Clause 6 : Misconduct : Failure to report “Material Misstatement” Part I

2 ND Schedule Clause 7 : Misconduct : Doesn't exercise Due Diligence, or Grossly Negligent of his duties. Part I

2 ND Schedule Clause 8 : Misconduct : Fails to obtain information for expression of opinion. Part I

2 ND Schedule Clause 9 : Misconduct : Failure to invite attention to any material departure to GAAP. Part I

2 ND Schedule Clause 10 : Misconduct : Failure to keep client money in a separate bank account, or Use such money within reasonable time. (other than fee /remuneration, even advance) Part I

2 ND Schedule Clause 1 : Misconduct : Contravention of any provision of this Act, Regulations or any guidelines issued by council. Part II

2 ND Schedule Clause 2 : Misconduct : Being employee disclose confidential information without consent /legal requirement. Part II

2 ND Schedule Clause 3 : Misconduct : Submit false information to ICAI/its constituents. Part II

2 ND Schedule Clause 4 : Misconduct : Defalcates or Embezzles money received in professional capacity. Part II

2 ND Schedule Misconduct : I f he is held guilty by any civil or criminal court for an offence which is punishable with imprisonment for a term exceeding six months. Part III