Page 361 - CA Final PARAM Digital Book.

▪ As per Clause (1) of Part II of Second Schedule to the Chartered Accountants Act, 1949

Part II -- Requirements of Relevant Standards & Laws
➢ As per Clause (1) of Part II of Second Schedule to the Chartered Accountants Act, 1949, a member
of the Institute, whether in practice or not, shall be deemed to be guilty of professional misconduct,
if he contravenes any of the provisions of this Act or the regulations made thereunder or any
guidelines issued by the Council.
This clause requires every member of the Institute to act within the framework of the Chartered
Accountants Act and the Regulations made thereunder. Any violation either of the Act or the
Regulations by a member would amount to misconduct.

Part III – Case Discussion
➢ In the given case, CA. Vineet has issued a certificate in respect of a consumption statement of raw
material to the manager of ZedEx (P) Ltd., as a Chartered Accountant in practice when he had not
even applied for the CoP to the Institute, thereby contravening the provisions of section 6 of the
Chartered Accountants Act, 1949.

Part IV – Conclusion
➢ Therefore, CA. Vineet will be held guilty of professional misconduct in terms of clause (1) of Part II
of Second Schedule to the Chartered Accountants Act, 1949 for contravention of provisions of this
Act by issuing certificate in respect of a consumption statement of raw material.
Author’s Note

Following has not been included in detail by the institute in answer, however as per author it is advisable
that it shall be included. Students are free to take their stand.

Section 6 -Certificate of Practice tells about the significance of COP.
• No member of the Institute shall be entitled to practise whether in India or elsewhere unless he

has obtained from the Council a certificate of practice.
• A member who is not in practice is precluded from accepting engagement to render services
of any of the types normally prescribed for a Chartered Accountant, even though for doing so, he
does not require special qualifications

So, CA Vineet has contravened with of the provisions of section 6 of the CA Act ,1949 by issuing the raw
material consumption certificate to the manager of the company.
CA deemed to be in practice
In any case where CA is practicing without COP, concept of deemed to be in practice will be applicable, apart
from non-compliance of Sec 6. ICAI thought from point of view of Sec 6, you can very well mention Sec 2(2)
at the end.

If he does any unethical activity while doing such practice first schedule & second schedule will get applicable
and he will be further punished for wrong deeds,
• Consequence
Consequence is applicability of all points of CA in practice and getting punished for any unethical act.

QNO Sec 6 --Practice during Suspension Old Course – (N11E, PM17, N23M)
655.200 TITANIUM CNO – PE.700 New Course – (SM23)

A Chartered Accountant in practice has been suspended from practice for a period of 6 months and he
had surrendered his Certificate of Practice for the said period. During the said period of suspension, though
the member did not undertake any audit assignments, he undertook representation assignments for
income tax whereby he would appear before the tax authorities in his capacity as a Chartered
Accountant.

Answer Part I -- Relevant Standards & Laws
▪ Chapter II - Section 6 of the Chartered Accountants Act, 1949

Part II -- Requirements of Relevant Standards & Laws

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