Page 389 - CA Final PARAM Digital Book.

However, such restriction shall not be applicable where minimum fee of the assignment is prescribed
in the tender document itself or where the areas are open to other professionals along with the
Chartered Accountants.

Part III – Case Discussion
In the given case of ARG Cooperative Bank, Bank mailed the list of branches to the audit
firms along with maximum fees per branch, in response to which SR & Associates
responded and submitted their quotation.

Part IV – Conclusion
Keeping in view the facts, clause 6 and guideline issued by the council, it can be concluded
that SR & Associates is guilty of Professional misconduct.

QNO First Schedule, Part I,Cl,6 Solicitation (Another CA Firm) Old Course – (N13E, PM17 SM17, M23M)
678.000 TITANIUM CNO – PE.1140 New Course- (SM23)
Mr. Honest, a Chartered Accountant in practice, wrote two letters to M/s XY Chartered Accountants a
firm of CAs; requesting them to allot him some professional work. As he did not have a significant
practice or clients he also wrote a letter to M/s ABC, a firm of Chartered Accountants for securing
professional work. Mr. Clever, another CA, informed ICAI regarding Mr. Honesty’s approach to secure
the professional work. Is Mr. Honest wrong in soliciting professional work?
Answer Part I -- Relevant Laws
▪ Clause (6) 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 misconduct if he solicits clients
or professional work either directly or indirectly by a circular, advertisement, personal
communication or interview or by any other means. Such a restraint has been put so that the
members maintain their independence of judgment and may be able to command respect from their
prospective clients. Provided that nothing herein contained shall be construed as preventing or
prohibiting any Chartered Accountant from applying or requesting for or inviting or securing
professional work from another chartered accountant in practice.

Part III – Case Discussion
➢ In the given case, Mr. Honest wrote letters only to other Chartered Accountants, M/s XY and M/s
ABC requesting them to allot some professional work to him.

Part IV – Conclusion
➢ Thus, Mr. Honest is not wrong in soliciting professional work.

First Schedule, Part I, Cl,6 Solicitation (Accepting work emanating from Old Course – (N18E)
QNO contact of Another CA)
678.010
TITANIUM CNO – PE.1140
During the opening ceremony of a new branch office of CA. Young, his friend CA. Old introduced to CA.
Young, his friend and client Mr. Rich, the owner of an Export House whose accounts had been audited by
CA. Old for more than 15 Years. After few days, Mr. Rich approached CA. Young and offered a

certification work which hitherto had been done by CA. Old. CA. Young undertook the work for a fee
which was not less than fee charged by CA.Old in earlier period. Comment whether CA. Young had
done any professional misconduct.
Answer Part I -- Relevant Laws
▪ Clause (6) of Part I of First Schedule to the Chartered Accountants Act, 1949

▪ Clarification by ICAI
Part II -- Requirements of Relevant Laws
➢ Clause 6

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

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