Page 394 - CA Final PARAM Digital Book.

➢ Hence the firm would be liable for misconduct under Clause (6) of Part I of the First Schedule to the
Chartered Accountants Act, 1949

QNO First Schedule, Part I, Cl,6 -Website (Multiple Issues) Old Course – (M07E, M09R, N16M, PM17,
686.000 TITANIUM CNO – PE.1140 M18R, M19R, N20E)
Mr. Brilliant, a chartered accountant in practice, created his own website in attractive format and
highlighted the contents in blue colour. He also circulated the information contained in the website
through E-mail to acknowledge public at large about his expertise. However, due to shortage of time,
he could not intimate his website address to the Institute
OR
Comment with reference to the Chartered Accountants Act, 1949 and schedules thereto: Mr. Vineet, a
chartered accountant in practice, created his own website in attractive format and highlighted the
contents in purple colour. The website also displayed the nature of assignments handled along with the
names of clients without such requirement from any of the regulator. He also circulated the information
contained in the website through e-mail to acknowledge public at large about his expertise. However, he
did not intimate his website address to the Institute.

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
➢ Circulating Information Contained in Own Website: As per Clause (6) of Part I of the First
Schedule to the Chartered Accountants Act, 1949, a Chartered Accountant in practice is 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.
1. However, the guidelines approved by the Council of the Institute of Chartered Accountants of
India permit creation of own website by a chartered accountant in his or his firm name and no
standard format or restriction on colours is there. Hence there is no misconduct as per
Clause (6) of Part I of the First Schedule to the Chartered Accountants Act, 1949.
2. The chartered accountant or firm, as per the guidelines, should ensure that none of the
information contained in the website be circulated on their own or through E-mail or by any
other mode except on a specific “Pull” request.
3. Nature of assignments handled (to be displayable only on specific “pull” request). Names of
clients and fee charged cannot be given without such requirement from any of the regulator.
Mr. Vineet has displayed the nature of assignments handled along with the name of clients without
such requirement from the regulator. Therefore, he is guilty of professional misconduct under
Clause (6) of Part I of the First Schedule to the said Act.
Part III – Case Discussion
➢ Mr. Vineet has circulated the information contained in the website through e-mail to public at large.
Part IV – Conclusion
➢ Therefore, he is guilty of professional misconduct under Clause (6) of Part I of the First Schedule
to the said Act.
Author’s Note
As on today, no need to take permission for website, no need to immediately intimate about website to
ICAI

QNO First Schedule, Part I,Cl,6 -Website (Push Technology) Old Course – (PM17, M17R, SM17,M20R SM21)
687.000 TITANIUM CNO – PE.1140 New Course – (SM23)
M/s ABZ & Co., a firm of Chartered Accountants, develops a website “abz.com”. The colour chosen for the
website was a very bright green and the website was to run on a “push” technology where the names

of the partners of the firm and the major clients were to be displayed on the website without any
disclosure obligation from any regulator.
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
➢ The Council of the Institute had approved posting of particulars on website by Chartered
Accountants in practice under Clause (6) of Part I of First Schedule to the Chartered Accountants
www.auditguru.in PARAM 19.36 | P a g e