Page 388 - CA Final PARAM Digital Book.

o 10 clarifications of Clause 7 of Part I of First Schedule to the Chartered Accountants Act,
1949 and
o 8 common clarification for above clause 6 & 7
o The above question is related to 12 clarifications of Clause 6 of Part I of First Schedule to
the Chartered Accountants Act, 1949.

If any question relates to these clarifications, concerned clause number should be
referred
Clarifications & shortcut to remember clarifications are explained in detail in regular
lectures and books.

o “Request for empanelment- Not Solicitation “ Vs “Roving inquiry – Solicitation”
o Roving Inquiry means applying without verifying whether there is requirement or panel
maintained by authority.
o Empanelment where CA is aware about panel is not guilty.

These are 2 separate points, below are 2 separate points :

o Roving Inquiry Circular
- It is not permissible for a member to address letters or circulars to persons who
are likely to require services of a Chartered Accountant since it would tantamount
to advertisement.

o Applying for empanelment
- CA can apply if he has information regarding existence of panel.
- Mention fees (only if asked
- No cyclostated (pre-printed) copies of fees

First Schedule, Part I,Cl,6 -- Quoting Fees in Old Course— (M21E)
QNO response to Query
677.500
TITANIUM CNO – PE.1140
M/s SR & Associates is one of the three firms shortlisted by ARG Cooperative Bank for assignment of
Statutory Audit for the F.Y 2020-2021. Bank mailed the list of branches to the audit firms along with
the maximum fee per branch and asked them to submit the quotations. SR & Associates responded
to the bank and submitted their quotation. Comment with reference to the provisions of the Chartered
Accountants Act, 1949 and schedules thereto.
Answer Part I -- Relevant Standards & Laws
Clause 6 of Part I of First Schedule

Part II -- Requirements of Relevant Standards & Laws
As per Clause (6) of Part I of First Schedule to the Chartered Accountants Act, 1949, a Chartered
Accountant in practice will be deemed to be guilty of professional misconduct if he Solicits clients or
professional work either directly or indirectly by circular, advertisement, personal communication or
interview or by any other means.

Provided that nothing herein contained shall be construed as preventing or prohibiting –

(i) Any Chartered Accountant from applying or requesting for or inviting or securing professional work
from another chartered accountant in practice; or

(ii) A member from responding to tenders or enquiries issued by various users of professional services
or organizations from time to time and securing professional work as a consequence.

However, as per the guideline issued by the Council of the Institute of Chartered Accountants of India,
a member of the Institute in practice shall not respond to any tender issued by an organization or user
of professional services in areas of services which are exclusively reserved for chartered accountants,
such as audit and attestation services.

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