Page 455 - CA Final PARAM Digital Book.

Conclusion: UDIN will be applicable to GST & Tax Audit Reports signed by Mr. Kushal for the financial year
2019-20 that are filed online using Digital Signature. In case where there is no field for mentioning UDIN on
digitally signed online reports, UDIN has to be generated and communicated to “Management” or “Those
Charged with Governance” for disseminating it to the stakeholders from their end.
Hence he will be held guilty under Clause 1 of Part II of the Second Schedule to the Chartered
Accountants Act,1949.

Second Schedule, Part II, Cl,3 --False Information to Council about Article Old Course-- (M12E, PM17)
QNO Attending College
768.000
TITANIUM CNO –PE.1660 / PE.1700
A Chartered Accountant in practice had confirmed in the application made by his articled clerk to
the Council for permission to study that the normal working hours of his office were 11 a.m. to 6
p.m. and the hours during which the articled clerk was required to attend college classes were 7 a.m. to
9.30 a.m. On inquiry from Principal of College, it was ascertained that the articled clerk used to attend
classes from 10 a.m. to 1.55 p.m. The Chartered Accountant pleaded ignorance about the articled
clerk attending the college classes during office hours. Will the Chartered Accountant be held guilty of
professional misconduct?
Answer Part I -- Relevant Standards & Laws
▪ As per Clause (1) of Part II of Second Schedule to the Chartered Accountants Act, 1949
▪ As per Clause (3) of Part II of Second Schedule to the Chartered Accountants Act, 1949
Part II -- Requirements of Relevant Standards & Laws
➢ Clause (1) of Part II of Second Schedule
A member shall be held guilty of professional misconduct if he contravenes any of the provisions
of the Act or the regulations made thereunder or any guidelines issued by the Council.

The chartered accountant, as per Regulations also, is expected to impart proper practical training.
There is a specific circular issued which guides on timing for training for article ship.

Part III – Case Discussion
➢ In the instant case, on inquiry from Principal of College, it was ascertained that the articled clerk
used to attend classes from 10 a.m. to 1.55 p.m. The articled clerk must have not been attending
office on a regular basis
Part IV – Conclusion
➢ Since the articled clerk must have not been attending office on a regular basis, the explanation of
the Chartered Accountant cannot be accepted. It is also quite likely that the articled clerk would be
availing leave quite often and coming late to the office.

Under the circumstances, the Chartered Accountant is guilty of misconduct for making a
misstatement to the institute in regard to the discharge of his professional duties.
Note:
➢ As per Clause (3) of Part II of Second Schedule to the Chartered Accountants Act, 1949
Alternative Solution is possible as per Schedule II, Part II, Clause (3), a member is deemed to be
guilty of professional misconduct if he includes in any information, statement, return or form to be
submitted to the Institute, Council or any of its Committees, Director (Discipline), Board of
Discipline, Disciplinary Committee, Quality Review Board or the Appellate Authority any particulars
knowing them to be false.

In the instant case, X knew about the college timing of his articled assistant and he had given false
information to the institute knowing them to be false and hence he will be deemed to be guilty of
professional misconduct.
Author’s Note

Institute has provided an alternative solution also, however as per author it should not be an alternative
solution but shall form part of the answer. Following clauses shall be mentioned:
➢ Clause (1) of Part II of Second Schedule – As CA has contravened with the provisions of the
Act or regulation.
➢ Schedule II, Part II, Clause (3) - CA has provided false information to the institute regarding
the office hours of article assistant.
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