Significance of the Certificate of Practice – Professional Ethics

Significance of the Certificate of Practice

Once the person concerned becomes a member of the Institute, he is bound by the provisions of the Chartered Accountants Act and its Regulations

A member to practice must have a certificate of practice. He cannot accept any engagement for services without the valid certificate of practice.

If a chartered accountant has surrendered his certificate of practice due to misconduct he cannot appear before taxation authorities. Which means, If and when he appears before the Income-tax Tribunal as an Income-tax representative after having become a member of the Institute, he could so appear only in his capacity as a Chartered Accountant and a member of the Institute.

Misconducts

Misconduct means going against the content’s mentioned in the Schedules, by any member of the Institute. Misconduct can be bifurcated as:-

1. Professional Misconduct –

It shall be deemed to include any act or omission provided in any of the Schedules, but nothing in this section shall limit the Director of Discipline to inquire into conduct of any member of the Institute under any other Circumstances.

1. Other Misconduct –

Other misconduct has been defined in part IV of the First Schedule and part III of the Second Schedule, and Part III of the Second Schedule to the Chartered Accountants Act.

Schedules

There are two Schedules.

    First Schedule

Part – I           12 Clauses        Professional Misconduct

C.A. in Practice

Part – II          2 Clauses         Professional Misconduct

C.A. in Service

Part – III          3 Clauses         Professional Misconduct

C.A. Generally

Part – IV         2 Clauses         Other Misconduct

    Second Schedule

Part – I           10 Clauses        Professional Misconduct

C.A. in Practice

Part – II          4 Clauses         Professional Misconduct

C.A. Generally

Part – III          1 Clause          Other Misconduct

(As per Syllabus, Only Clauses can be asked and no Case study relating to It, Hence Clauses are to be written as specified by ICAI in the Act)