Know Your Ethics – Chartered Accountants or Members of ICAI is Now Check Various Issues or Queries Related to there Ethics. Now Scroll Down below n check Various Issues and there answers faced by chartered accountants.
Q. Whether sponsorship or prizes can be instituted in the name of Chartered Accountants or a firm of Chartered Accountants?
A. Yes, an individual 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 and the provisions of Clause (6) of Part-I of the First Schedule to the Chartered Accountants Act,1949 regarding advertisement and publicity is complied with.
Q. Can a Chartered Accountants firm give advertisement in relation to Silver, Diamond, Platinum or Centenary celebration of the firm?
A. Yes, while considering the implications of Clause (6) & (7) of Part I of the First Schedule of the Chartered Accountants Act, 1949 in relation to such advertisements and also the need of interpersonal socialiSation/relationship of the members through such get together occasions, the advertisement for Silver, Diamond, Platinum and Centenary celebrations of the firms has been permitted to be published in any newspaper or in the newsletters.
Q. In a representation submitted to a company under section 140(4) of the Companies Act, 2013, the auditors of the company included the contribution made by the firm in strengthening the control procedures of the company during their association with the company. Is it misconduct (Case Study)?
A. Para (i) under Clause (6) of Part I of the First Schedule to the Chartered Accountants Act, 1949 as appearing in the Code of Ethics, 2009, provides for scope of such representation, which an Auditor is entitled to make under section 225 (3) of the Companies Act, 1956 (Section 140(4) of Companies Act, 2013). Section 140(4) of the Companies Act, 2013 permits a retiring auditor to make a representation in writing (not exceeding a reasonable length) to the company. The proposition of the partner to highlight contributions made by the firm in strengthening the control procedures in the representation should not be included in such representation because the representation letter should not be prepared in a manner so as to seek publicity.
The Code of Ethics issued by the Institute makes it amply clear that the right to make representation does not mean that an auditor has any prescriptive right or a lien on an audit. The wording of his representation should be such that, apart from the opportunity not being abused to secure needless publicity, it does not tantamount directly or indirectly to canvassing or soliciting for his continuance as an auditor. The letter should merely set out in a dignified manner how he has been acting independently and conscientiously through the term of office and may, in addition, indicate if he so chooses his willingness to continue as auditor if re-appointed by the shareholders. Thus, such action proposed by a firm could not be approved since, it may lead to his being held guilty of professional misconduct under Clause (6) of Part I of the First Schedule to the Chartered Accountants Act, 1949.
Q. Can a Chartered Accountant in practice accept original professional work emanating from the client introduced to him by another member?
A. No, Para (j) under Clause (6) of Part I of the First Schedule to the Chartered Accountants Act, 1949 as appearing in the Code of Ethics, 2009, prescribes that a member should not accept the original professional work emanating from a client introduced to him by another member. If any professional work of such client comes to him directly, it should be his duty to ask the client that he should come through the other member dealing generally with his original work.
Q. Whether a Chartered Accountant in practice can give public interviews and also whether he can furnish details about himself or his firm in such interviews?
A. 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, which may hit clauses (6) & (7) of Part-I of the First Schedule to the Chartered Accountants Act, 1949. Any detail which is given, must, in addition to meeting above requirements, be given only on a specific question being posed, and of factual nature only.
Q. Whether a member can appear on television/ Radio or give lectures at Forums?
A. Yes, Council direction under Clause (7) of Part I of the First Schedule to the Chartered Accountants Act,1949 as appearing in Code of Ethics, 2009, prescribes that a member may appear on television/Radio or give lectures at forums and may give his name and describe himself as chartered accountant. Special qualifications or specialized knowledge directly relevant to the subject matter of the programme may also be given. But no reference should be made, in the case of practicing member to the name and address or services of his firm. What he may say or write must not be promotional of him or his firm but must be an objective professional view of the topic under consideration.
Q. A Chartered Accountant in practice during a TV interview, handed over a bio-data of his firm to the Chairperson. Such bio-data detailed the standing of the international firm with which the firm was associated.
It also detailed the achievements of the concerned partner and his recognition as an expert in the field of taxation in the country. The chairperson read out the said bio-data during the interview. Is it a professional misconduct? (Case Study)
A. Yes, Clause (6) of Part I of the First Schedule to the Act prohibits solicitation of client or professional work either directly or indirectly by circular, advertisement, personal communication or interview or by any other means since it shall constitute professional misconduct. The member would be held guilty of professional misconduct under Clause (6) of Part I of the First Schedule to the Chartered Accountants Act, 1949 under the given circumstances.
Q. Can a Chartered Accountant in practice/ Firm of Chartered Accountants post the particulars of himself/ itself on a website?
A. Yes, the Council has approved the detailed guidelines for posting the particulars on Website by Chartered Accountants in practice and firm(s) of Chartered Accountants in practice.
Q. Whether website of any Chartered Accountant can provide a link to the website of ICAI, its Regional Councils and Branches and also to the websites of Govt. /Govt. Departments/Regulatory authorities and other professional bodies?
A. Yes, it is permitted that website may provide link to the website of ICAI, its Regional Councils and Branches and also to the websites of Govt./ Govt. Departments/Regulatory authorities and other professional bodies.
Q. Whether the information contained in the website of the Chartered Accountants and/ or Chartered Accountants’ firms can be circulated on their own or through e-mail or by any other mode or technique?
A. Paras (3) & (4) of Website Guidelines issued by ICAI prescribe that the Chartered Accountants and/or Chartered Accountants’ firms should ensure that none of the information contained in the website be circulated on their own or through e-mail or by any other mode or technique except on a specific “pull” request. The Chartered Accountants and/or Chartered Accountants’ Firms would ensure that their Websites are run on a “pull” model and not a “push” model of the technology to ensure that any person who wishes to locate the Chartered Accountants or Chartered Accountants’ firms would only have access to the information and the information should be provided only on the basis of specific “pull” request.
Q. Can a member put up his photograph on the website?
A. Yes, Para (8) of Website Guidelines issued by ICAI provides that display of passport size photograph is permitted.
