Page 400 - CA Final PARAM Digital Book.

QNO First Schedule, Part I,Cl,7 --Visiting Card (Quick Response Code) Old Course – (M17E, N18M)
695.000 TITANIUM CNO – PE.1180
Mr. M, a Chartered Accountant in practice, has printed visiting cards which besides other details also
carries a Quick Response (QR) code. The visiting card as well the QR code contains his name, office

and residential address, contact details, e-mail id and name of the firm's website. Comment with
reference to the Chartered Accountants Act, 1949 and schedules thereto.

Answer Part I -- Relevant Laws
▪ Clause (7) of Part I of the First Schedule to the Chartered Accountants Act, 1949

Part II -- Requirements of Relevant Laws
➢ A Chartered Accountant in practice is deemed to be guilty of professional misconduct if he advertises
his professional attainments or services.
Ethical Standards Board has also clarified that a member in practice is allowed to print Quick
Response Code (QR Code) on the visiting Card, provided that the Code does not contain information
that is not otherwise permissible to be printed on a visiting Card.

Part III – Case Discussion
➢ In the given case, Mr. M has printed visiting cards which carries Quick Response Code (QR Code)
besides other details.
Part IV – Conclusion
➢ The visiting card as well as the QR Code contains his name, office and residential address, contact
details, e-mail id and name of the firm’s website which are otherwise allowed to be printed on the
visiting cards of a Chartered Accountant in practice. Thus, Mr. M is not guilty under Clause (7) of Part
I of First Schedule to the Chartered Accountants Act, 1949.

First Schedule, Part I,Cl,6 and 7 Professional Old Course – (M09R, PM17, SM17, N18E, M21E)
QNO Achievements (Offer Documents) New Course – (SM23)
695.010
TITANIUM CNO – PE.1140 / PE.1180
Is there any misconduct on the part of a Chartered Accountant in the following circumstances?
The offer document of a listed company in which Mr. D, a practising Chartered Accountant is a director

mentions the name of Mr. D as a director along with his various professional attainments and spheres
of specialisation
Answer Part I -- Relevant Laws
▪ Clause (6) & (7) of Part I of First Schedule to the Chartered Accountants Act, 1949

Part II -- Requirements of Relevant Laws
➢ The Council of the ICAI has in a communication to members stated that if a public company, in which
a chartered accountant in practice is a director, issues a prospectus or gives any announcement that
gives descriptions about the Chartered Accountant’s expertise, specialisation and knowledge in any
particular field, it shall constitute a violation of Clauses (6) and (7) of Part I of the First Schedule to
the Chartered Accountants Act, 1949. The Council has further stated that in such cases the member
concerned has to take necessary steps to ensure that such prospectus or public announcements or
public communications do not advertise his professional attainments and also that such prospectus
or public announcements or public communications do not directly or indirectly amount to
solicitation of clients for professional work by the members.
➢ It is advisable for a member that as soon as he is appointed as a director on the Board of a Company,
he should specifically invite the attention of the management of the Company to the aforesaid
provisions and should request that before any such prospectus or public announcements or public
communication mentioning the name of the member concerned, is issued, the material pertaining
to the member concerned should, as far as practicable be got approved by him.

Part III – Case Discussion
➢ In the given situation, a company has appointed a practicing chartered accountant as independent
director on its board. The said company published description about the Chartered Accountant’s
expertise, specialisation and knowledge in any particular field or add appellations or adjectives to
his names in the prospectus or public announcements issued by this Company.

Part IV – Conclusion

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