FAQs of Professional Ethics relating to CA Profession
FAQs of Professional Ethics relating to CA Profession
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Q. Whether a chartered
accountant in practice can use expression like ‘Income Tax Consultant’, ‘Cost
Accountant’, ‘Company Secretary’, ‘Cost Consultant’ or a ‘Management
Consultant’?
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A. No, direction given by
the Council under Clause (7) of Part I of the First Schedule to the CA Act
prescribes that it is improper for a chartered accountant to state on his
professional documents that he is an Income-tax Consultant, Cost Accountant,
Company Secretary, Cost Consultant or a Management Consultant.
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Q. Can a chartered
accountant in practice also practice as an advocate?
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A. Yes, direction given by
the Council under Clause (7) of Part I of the First Schedule to the CA Act
prescribes that a chartered accountant in practice who is otherwise eligible
may practice as advocate, subject to the permission of the Bar Council. But
in such cases , they should not use designation 'chartered accountant' in
respect of the matters involving the practice as an advocate. In respect of
other matters they should use the designation 'chartered accountant' but they
should not use the designation 'chartered accountant' and 'advocate'
simultaneously.
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Q. Whether a chartered
accountant in practice can use the designation 'Corporate Lawyer'?
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A. No, a chartered accountant
in practice is not permitted to use the designation 'Corporate Lawyer'.
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Q. Can a chartered
accountant in practice/firm give advertisement in press?
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A. Yes, the members in
practice may advertise through a write-up setting out the services provided
by him or his firm and particulars of his firm subject to Advertisement
Guidelines issued by the Council( published in December, 2009 issue of the
journal).
Direction given by the Council under Clause (7) of Part I of the First Schedule to the CA Act provides that a chartered accountant in practice/firm cannot give advertisement in press. However, a special exemption has been made as regards publication of the name and address of a member or that of his firm, with the description chartered accountant(s), in an advertisement appearing in the press in the circumstances as listed below , provided that the advertisement is not displayed more prominently than is usual for such advertisements or the name of the member or that of his firm with the designation chartered accountant(s) appears in type not bolder than the substance of the advertisement:
When advertising for staff, it
is desirable that members should avoid the expression such as “a well-known
firm”, since this would savour of advertisement. Similar considerations apply
to advertisements for articled assistants. The advertisements should not
contain any promotional element nor should there be any suggestion that the
services offered by the chartered accountants or his firm are superior to
those offered by other accountants.
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Q. Whether a member can
appear on television/radio or give lectures at forums?
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A. Yes, direction given by
the Council under Clause (7) of Part I of the First Schedule to the CA Act
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.
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Q. Whether companies in
which chartered accountants have been appointed as directors on their Board
can publish description about the chartered accountant's expertise,
specialization and knowledge in any particular field or add appellations or
adjectives to their names in the prospectus or public announcements issued by
these companies?
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A. The Council's attention
has been drawn to the fact that more and more companies are appointing
chartered accountants as directors on their Boards. The prospectus or public
announcements issued by these companies often publish descriptions about the
chartered accountants' expertise, specialization and knowledge in any
particular field or add appellations or adjectives to their names. Attention
of the members in this context is invited to the provisions of Clause (6) and
(7) of Part I of the First Schedule to the CA Act.
In order that the inclusion of the name of a member of the Institute in the prospectus or public announcements or other public communications issued by the companies in which the member is a director does not contravene the above noted provisions, it is necessary that the members should take necessary steps to ensure that such prospectus or public announcements or public communications do not advertise his professional attainments and also that such prospectus or public announcements or public communications do not directly or indirectly amount to solicitation of clients for professional work by the member. While it may be difficult to lay down a rigid rule in this respect, the members must use their good judgement, depending upon the facts and circumstances of each case to ensure that the above noted provisions are complied with both in letter and spirit. It is advisable for a member that as soon as he is appointed as a director on the Board of a company, he should specifically invite the attention of the management of the company to the aforesaid provisions and should request that before any such prospectus or public announcements or public communication mentioning the name of the member concerned, is issued, the material pertaining to the member concerned should, as far as practicable be got approved by him.
FAQs of Professional Ethics relating to CA Profession
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