Page 365 - CA Final PARAM Digital Book.

civil or criminal court for an offence which is punishable with imprisonment for a term
exceeding six months.
This provision empowers the Council to enquire any misconduct of a member even if it does
not arise of professional misconduct.
➢ Some illustrative examples, where a member may be found guilty of “Other
Misconduct”, under the aforesaid provisions rendering, himself unfit to be member
are:
• Where a chartered accountant retains the books of account and documents of the client
and fails to return these to the client on request without a reasonable cause.
• Where a chartered accountant makes a material misrepresentation.
• Where a chartered accountant uses the services of his articled or audit clerk for purposes
other than professional practice
• Conviction by a competent court of law for any offence under Section 8(v) of the Chartered
Accountants Act 1949.
• Misappropriation by office-bearer of a Regional Council of the Institute, of a large amount
and utilisation thereof for his personal use.
• Non-replying within a reasonable time and without a good cause to the letter of the public
authorities.
• Where certain assessment records of income tax department belonging to the client of
Chartered Accountant were found in the almirah of the bed-room of the chartered
accountant.
• Where a chartered accountant had adopted coercive methods on a bank for having a loan
sanctioned to him.

QNO Sec 21 -- Other Misconduct (Not Replying to Public Authority) Old Course-- (N20E)
656.500 TITANIUM CNO – PE.1440
Mr. P, a practicing Chartered Accountant did not reply within a reasonable time and without any cause
to the letter received from the local Police Station, a public authority, soliciting his suggestions as
regards some non-professional work. Comment with reference to Chartered Accountant Act, 1949.
Answer Section 21 of the Chartered Accountants Act, 1949 provides that a member is liable for disciplinary
action if he is guilty of any professional or “Other Misconduct.” Though the term “Other Misconduct”
has not been defined in the said Act, this provision enables the Council to enquire into any misconduct
of a member even if it does not arise out of his professional work.

This is considered necessary because a chartered accountant is expected to maintain the highest
standards of integrity even in his personal affairs and any deviation from these standards even in his
non-professional work, would expose him to disciplinary action. The Council has also laid down that
among other things “non-replying within a reasonable time and without a good cause to the letter of
the public authorities.” would amount to “other misconduct”.

In the given scenario, CA. P did not reply within a reasonable time and without any cause to the
letter received from the local police station, a public authority regarding soliciting his suggestion as
regards some non-professional work. Thus, in the instant case, CA. P would be liable for disciplinary
action.

QNO Sec 27 --Sec 27 (Separate branch In charge) Old Course – (N12M, PM17)
657.000 TITANIUM CNO – PE.880
Write a short note on - Maintenance of branch offices by Chartered Accountants in practice.

Answer Part I -- Relevant Standards & Laws
▪ Section 27 of the Chartered Accountants Act, 1949
Part II -- Requirements of Relevant Standards & Laws

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