Page 426 - CA Final PARAM Digital Book.

Part II -- Requirements of Relevant Laws
➢ A member, whether in practice or not, will be deemed to be guilty
of professional misconduct if he does not supply the information
called for, or does not comply with the requirements asked for, by
the Institute, Council or any of its Committees, Director
(Discipline), Board of Discipline, Disciplinary Committee, Quality
Review Board or the Appellate authority.

Part III – Case Discussion
➢ In the given case, Mr. X has failed to reply to the letters of the
Institute asking him to confirm the date of leaving the service as a
paid assistant.
Part IV – Conclusion
➢ Therefore, Mr. X is held guilty of professional misconduct as per Clause (2) of Part III of the First
Schedule to the Chartered Accountants Act, 1949.
Author’s Note

Students don’t write the names of all authorities and that’s why loose ,marks in this clause.
There are total 8 authorities in the picture above . The first 4 are in ICAI hierarchy in the order of

importance and the next 4 are in Discipline hierarchy in the order of importance

First Schedule, Part III,Cl,2 --Not Responding to ICAI Old Course – (M13M, PM17, M17E, N18E)
QNO (Non-Submission on Form 18)
731.000
TITANIUM CNO –PE.1380 / PE.1080
X, a chartered accountant in practice, in spite of several reminders from the Secretary of the Institute

of Chartered Accountants of India fails to submit Form 18. Is he liable for misconduct?
Answer Part I -- Relevant Laws
▪ Clause (2) of Part III of the First Schedule to the Chartered Accountants Act, 1949

▪ Clause (1) of Part II of the Second Schedule to the Chartered Accountants Act, 1949
Part II -- Requirements of Relevant Laws
➢ Clause (2) of Part III of the First Schedule to the Chartered Accountants Act, 1949
The clause requires a member to supply the information called for by the Council or any of its
Committees.
➢ Clause (1) of Part II of the Second Schedule to the Chartered Accountants Act, 1949
The clause requires every member of the Institute to act within the framework of the Chartered
Accountants Act and the Regulation made thereunder.

Under the former clause, it is misconduct for chartered accountants generally, if they do not supply
the information called for by the Council. The Secretary acts for the Council; hence, request from
the Secretary amounts to a request from the Council. Besides, it is also a contravention of Regulation
of the Chartered Accountants Regulations, 1988.
Part III – Case Discussion
➢ In the present case, X, a chartered accountant in practice, inspite of several reminders from the
Secretary of the Institute of Chartered Accountants of India fails to submit Form 18.
Part IV – Conclusion
➢ Thus, failure to submit Form 18 constitutes professional misconduct.

QNO Clause (2) of Part III of First Schedule -- Did Not Fill Columns Old Course – (M14E, PM17, SM17)
731.100 TITANIUM CNO – PE.1380 New Course- (SM23)
Mr. 'G', while applying for a certificate of practice, did not fill in the columns which solicit information

about his engagement in other occupation or business, while he was indeed engaged in a business.
Answer Part I -- Relevant Standards & Laws
▪ As per Clause (2) of Part III of First Schedule to the Chartered Accountants Act, 1949.
Part II -- Requirements of Relevant Standards & Laws
➢ A member shall be held guilty if a Chartered Accountant, in practice or not, does not supply the
information called for, or does not comply with the requirements asked for, by the Institute, Council

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