Clause 6 Continued with Clause 7 & Clause 8 – Professional Ethics.

8) No photographs of any sort are permitted. Display of Passport size

photograph is permitted

9) The listing on suitable search engine should be permitted. However, the field of search should be restricted only to the field of “Chartered Accountants” or “CA” or “Indian CA”, “Indian CPA”, “Indian Chartered Accountant” or any permutation or Combination related thereto. The Websites would be subjected to the guidelines.

10) The details in the Website should be so designed that it does not amount to soliciting client or professional work or advertisement of professional attainments or services.

11) No Advertisement in the nature of banner or any other nature will be permitted on the Website.

12)The Website should be befitting the profession of Chartered Accountants and should not contain any information or material which is unbecoming of a chartered accountant.

13)The address of the Website can be different from the name of the firm. But it should not amount to soliciting clients or professional work or advertisement of professional attainments or services.

14) The Website should mention the date upto which it is updated and the information should not be at material variance from the information as per the ICAI’s records.

Clause (7) Advertises his professional attainments or services,

or uses any designation or expressions other than the Chartered Accountant

on professional documents,

visiting cards,

letter heads or sign boards

unless it be a degree of a University established by law in India or recognized by the Central Government

or

a title indicating membership of the Institute of Chartered Accountants

or

of any other institution that has been recognized by the Central Government or may be recognized by the Council.

This clause prohibits advertising of professional attainments or services of a member. It also restrains a member from using any designation or expression other than that of a Chartered Accountant in documents through which the professional attainments of the member would come to the notice of the public.

It is improper for a Chartered Accountant to state on his professional documents that he is an Income-tax Consultant or a Cost Consultant or a Management Consultant.

The date of setting up the practice by a member or the date of establishment of the firm on the letterheads and other professional documents, etc. should not be mentioned. However in the Website, the year of establishment can be given on the specific “pull” request.

A member must not use the designation such as ‘Member of Parliament’, Municipal Councilor any other functionary in addition to that of Chartered Accountant.

Clause (8) accepts a position as auditor previously held by another chartered accountant

Or

a certified auditor who has been issued certificate under the Restricted Certificate Rules,1932,

without first communicating with him in writing.(RPAD)

The underlying objective is that the member may have an opportunity to know the reasons for the change in order to be able to safeguard his own interest the legitimate interest of the public and the independence of the existing accountant. It is not intended, in any way, to prevent or obstruct the change.

It is important to remember that every client has an inherent right to choose his accountant also that he may, subject to compliance, with the statutory requirements in the case of limited companies, make a change whenever he chooses, whether or not the reasons which had impelled him to do so are good and valid. The change normally occurs where there has been a change of venue of business and a local accountant is preferred or where the partner who has been dealing with the client’s affairs retires or dies; or where temperaments clash or the client has some good reasons to feel dissatisfied. In such cases, the retiring auditor should always accept the situation with good grace.

The professional reasons for not accepting an audit could be:

• Non-compliance of the provisions of Sections 224 and 225 of the Companies Act as mentioned in Clause (9) [now Section 139, 140 and 142 read with Section 141 of the Companies Act, 2013];

• Non-payment of undisputed audit fees by auditees other than in case of sick units for carrying out the statutory audit under the Companies Act or various other statutes; and

• Under-cutting of fees;

• Issuance of a qualified report.