Page 395 - CA Final PARAM Digital Book.

Act, 1949 subject to the prescribed guidelines. The relevant guidelines in the context of the website
hosted by M/s ABZ & Co. are:
• No restriction on the colours used in the website
• The websites are run on a “pull” technology and not a “push” technology
• Names of clients and fees charged not to be given.

However, disclosure of names of clients and/or fees charged, on the website is permissible only
where it is required by a regulator, whether or not constituted under a statute, in India or outside
India, provided that such disclosure is only to the extent of requirement of the regulator. Where
such disclosure of names of clients and/or fees charged is made on the website, the member/ firm
shall ensure that it is mentioned on the website [in italics], below such disclosure itself, that “This
disclosure is in terms of the requirement of [name of the regulator] having jurisdiction in [name of
the country/area where such regulator has jurisdiction] vide [Rule/ Directive etc. under which the
disclosure is required by the Regulator].

Part III – Case Discussion
➢ A firm of Chartered Accountants develops a website “abz.com”. The colour chosen for the website
was a very bright green and the web-site 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 web-site without any
disclosure obligation from any regulator.

Part IV – Conclusion
➢ In view of the above, M/s ABZ & Co. would have no restriction on the colours used in the website
but failed to satisfy the other two guidelines.
Thus, the firm would be liable for professional misconduct since it would amount to soliciting work
by advertisement.

QNO First Schedule, Part I,Cl,6 -Website (Visit Our Website) Old Course – (N10E, PM17)
688.000 TITANIUM CNO – PE.1140
PQR and Associates, Chartered Accountants have their website and on the letterhead of the firm it is
mentioned that "Visit our website: PQR com". In the website the nature of assignments handled,
names of prominent clients and fees charged is also displayed.
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 of Chartered Accountants has issued guidelines for posting the
particulars on Website by Chartered Accountants in practice and firms of Chartered Accountants in
practice under Clause (6) of Part I of First Schedule to the Chartered Accountants Act, 1949.
According to the guidelines the details in the website should be so designed that it does not amount
to soliciting client or professional work. It is permitted to mention the website address on
letterhead but soliciting people to visit website is not permitted.

The nature of assignments handled is permitted to display on website but only on specific 'Pull"
request. And the name of clients, the fees charged is not permitted to be displayed at all.

Part III – Case Discussion
➢ PQR and Associates letterhead invites to people to visit their website. Similarly, the website
mentions the nature of assignments, names of the prominent clients and fees charged
Part IV – Conclusion
➢ PQR & Associates will be held guilty of Professional Misconduct under Clause (6) of Part I of
First Schedule to the Chartered Accountants Act, 1949.

QNO First Schedule, Part I,Cl,6 --Online Coaching Old Course- (N22M)
688.500 TITANIUM CNO – PE.1140
CA Praful has recently qualified and has obtained certificate of practice. In the initial years, it is taking time
to set up his clientele base. He is also conducting audit of few entities. Simultaneously, he plans to provide
coaching to CA students online taking advantage of his fresh reservoir of knowledge. Therefore, he

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