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(b) A Chartered Accountant from the Institute of Chartered Accountants in England and
Wales in London, and in each case, the members concerned take the profits earned in
their own country.
Will it make any difference, if an Indian Chartered Accountant is practicing outside India and
becomes a partner with the aforesaid accountants?

(ii) A practising Chartered Accountant uses a visiting card in which he designates himself, besides as
Chartered Accountant, as
(a) Tax Consultant
(b) Cost Accountant.

Answer Part (i)
Part I -- Relevant Laws

▪ Clause (4) of Part I of First Schedule to the Chartered Accountants Act 1949
Part II -- Requirements of Relevant Laws
➢ A Chartered Accountant in practice shall be deemed to be guilty of professional misconduct if he
enters into partnership, in or outside India, with any person other than a chartered accountant in
practice or such other person who is a member of any other professional body having such
qualifications as may be prescribed, including a resident who but for his residence abroad would be
entitled to be registered as a member or whose qualifications are recognised by the Central
Government or the Council for the purpose of permitting such partnerships;

(a) Partnership with a CPA in New York
Part III – Case Discussion
➢ In the given case a Chartered Accountant practising in India enters into partnership with a Certified
Public Accountant in New York.

Part IV – Conclusion
➢ Thus, chartered accountant would be guilty of professional misconduct since certified public
accountants (CPA) are not eligible to become members of the Institute.
Author’s Note

A Certified Public Accountant in New York means a Certified Public Accountant practising in New York
(b) Partnership with a chartered accountant from ICAEW
Earlier, the Council had passed a resolution permitting chartered accountants from ICAEW
to become members of the Institute as also fulfilment of certain conditions in respect of
persons not permanently residing in India. However, the Council of the Institute at its
meeting held in December 1995 decided to withdraw the resolution w.e.f. December 8,
1995. In view of this, persons qualified from any of the four Institutes in the United Kingdom
including England and Wales are not entitled to have their names entered in the Register of
Members maintained by the Institute effective from December 8, 1995. Based on this
development, partnership between members of the Institute and members of above

foreign professional bodies will not be permissible from the above date.

Part III – Case Discussion
➢ In the given case a Chartered Accountant practising in India enters into partnership with a chartered
accountant from ICAEW

Part IV – Conclusion
➢ Even a chartered accountant from ICAEW who was eligible to become member of the Institute, the
profit sharing arrangement stated in the question goes against the provisions of Clause (4). Hence,
it would constitute professional misconduct.
Author’s Note
Chartered Accountant from the Institute of Chartered Accountants in England and Wales in London means

a practising Chartered Accountant from the Institute of Chartered Accountants in England and Wales in
London
Chartered Accountants practising outside India:
A member of the Institute of Chartered Accountants of India is governed by the Code of Ethics whether
practicing in India or outside India. Accordingly, the question of professional misconduct would arise if an

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