Clause (5&6) of Part 1 – schedule I (Professional ethics)

Clause (5)

Secures

either through the services of a person who is not an employee of such Chartered Accountant

or

who is not his partner

or

by means which are not open to a Chartered Accountant, any professional business.

 

By this the institute Explains that, a member in Practice must seek work NOT through any agency, but by the respect, that he is able to command for his professional talent and skill and by the confidence he is able to inspire by his reputation.

As per Marcus Aurelius, “A man must stand erect, and not to be kept erect by others.”

Clause (6)

Solicits clients

Or

professional work

either directly or indirectly

by circular, advertisement, personal communication or interview or by any other means

 

Provided that, following shall not be considered as soliciting clients/ Professional work.

• Any Chartered Accountant applying OR requesting for OR inviting OR securing professional work from another chartered accountant in practice

                        OR

• A member from responding to tenders OR enquiries issued by various users of professional services or organizations from time to time and securing professional work as a consequence.

 

In layman language, A member cannot advertise himself to get professional work. Few examples of Professional Misconduct under this clause are given below.

 

• Advertisement and note in the press:- A Members should not advertise for soliciting work or advertise in a manner which could be interpreted as soliciting or offering to undertake professional work
• Application for empanelment for allotment of audit and other professional work:-There was a panel of Auditors, from which One auditor/Firm would be allotted the statutory audit of the Co operative society. One on the panel members wrote several letters, to enquire for non selection of His/er firm as statutory auditors although being in the panel.

It was concluded that, writing a letter of enquiry, does not lead to soliciting, but writing several letters leads to bring the name of the firm in Focus, in comparison to the other members in the panel.

 

• Publication of Name or Firm Name by Chartered Accountants in the Telephone or other Directories published by Telephone Authorities or Private Bodies:-

A chartered Accountant can have his name in the Telephone or other Directories published by Telephone Authorities or Private Bodies, but, Not by making a Special Request or additional Payment

Permissible to a Chartered accountant are given below:-

1. The entry should appear in the section / category of “Chartered Accountants”.

 

2. The member/firm should belong to the town/city in respect of which the directory is being published.
3. The entry should be in normal type of letters. Entry in bolder type or abnormal type of letters or in a box is not permissible.
4. The order of the entries should be alphabetical and logical.

 

5. The entry should not appear in a manner giving the impression of publicity/ advertisement. Entry should not be given in a manner which gives prominence to it as compared to other entries.

 

6. The payment, if any, for the entry should not be unreasonable.

 

7. The entries should not be restricted and should be open to all the chartered accountants/firms of chartered accountants in the particular city/town in respect whereof the directory is published.

 

8. Subject to the above conditions, the members can also include their names in trade directories which are published and/or otherwise available such as electronic media e.g. internet, telephone services like ‘Ask me Services’.

 

 

Responding to Tenders, Advertisements and Circulars?

It is not prohibited to the members to respond to tenders and requests made by users of professional work.

Publication of Books or Articles?

A member is not permitted to indicate in a book or an article, published by him, the association with any firm of Chartered Accountants.

Issue of greeting cards or invitations?

The Council does not approve of the issue of greeting cards or personal invitations by members indicating their professional designation, status and qualification etc BUT

A Member can use the designation “Chartered Accountant” as well as the name of the firm in greeting cards, invitations for marriages and religious ceremonies and any invitation for opening or inauguration of office of the members, change in office premises and change in telephone members, provided that .such greeting cards or invitations etc. are sent only to clients, relatives and close friends of the members concerned.

Acquiring or emanating Client of other member?

The Council has decided 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.  

Giving public Interviews?

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.

 

Can a Member have his/ Firms own Website?

The Chartered Accountants and/or Chartered Accountants’ Firms would be free to create their own Website.

1. The actual format of the Website is not being prescribed, there is no restriction on the colors which may be used in the Website. Individual Members would also be permitted to have their WebPages in their trade name or individual name.
2. 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.

 

3. The Chartered Accountants would also not issue any circular or any other advertisement or any other material of any kind whatsoever by virtue of which they solicit people to visit their Website. The Chartered Accountants would, however, be permitted to mention their Website address on their professional stationery.

(By this, it means that, a member cannot have banners of Make my trip or Yahoo or Google on his website or cannot have any advertisement oh his website, on other websites. But he can have Links to Specific websites, such as Income tax, Sales tax etc on his website)

 

 

 

 

4. The following information may be allowed to be displayed on the Firms’/Members’ Websites:
   • Member/Trade/Firm name.

 

• Year of establishment.

 

• Member/Firm’s Address (both Head Office and Branches) Tel. No(s)

Fax No(s) E-mail ID(s)

• Nature of services rendered (to be displayable only on specific “pull” request)

 

• Partners –

 

Partners	Year	of	Other	Tel.	No.	Area	of
Name	Qualification		Qualification(s)	Direct,	Res.,	Experience
				Mobile,		(to	be
				E-mail,		displayable
				Address		only	on
						specific	“pull”
						request)

 

(vi)  Details of Employees –
	Professional	Other		Name		Designation		Area of Experience
								(to  be	displayable
								only	on   specific
								“pull” request)
(vii)  Job vacancies for the Chartered Accountant/firm of Chartered Accountants
(including article ship).
(viii) No. of articled clerks, (to be displayable only on specific “pull” request).
(ix)  Nature  of  assignments			handled  (to		be  displayable		only  on		specific  “pull”
request) Names of clients and fee charged cannot be given.

 

 

7) Logo that can be used is