Page 463 - CA Final PARAM Digital Book.

▪ Council General Guidelines 2008- Specified number of audit assignments
▪ Council General Guidelines 2008- Maintenance of books of accounts

Part II -- Requirements of Relevant Laws
➢ Chapter VIII of Council General Guidelines 2008 - Specified number of audit assignments
The Council of the Institute of Chartered Accountants of India specified that a Chartered
Accountants in practice as well as a firm in practice shall maintain a record of the audit
assignments accepted as laid out in guidelines issued by the Council of the ICAI under Part II of
Second Schedule to the Chartered Accountants Act, 1949 in respect of ceiling on audits containing
following particulars:
• Name of Company Audit/ Assignment.
• Regn. No.
• Date of appointment with Registrar of Companies.
• Date of acceptance.
• Date on which Form ADT-1 as per the provisions and rules made under Companies Act,
2013.
➢ Chapter V of the Council General Guidelines, 2008 - Maintenance of books of accounts
A member of the Institute in practice or the firm of Chartered Accountants of which he is a
partner, shall maintain and keep in respect of his/its professional practice, proper books of
accounts including the following-
(i) a Cash Book
(ii) a Ledger
Part III – Case Discussion
➢ In the given case, L, a chartered accountant did not maintain books of account for his professional
earnings on the ground that his income is less than the limits prescribed u/s 44AA of the Income
Tax Act, 1961.
Part IV – Conclusion
➢ Hence, Mr. L is guilty of professional misconduct.

OTHERS (P.E)

QNO Excessive Fees Old Course-- (M13R, N15R, M17M, PM17, M18M)
779.000 TITANIUM CNO – PE.1760

MNC Pvt. Ltd. appointed CA. Posh for some professional assignments like company’s ROC work,
preparation of minutes, statutory register etc. For this, CA. Posh charged his fees depending on the
complexity and the time spent by him on each assignment. Later on, MNC Pvt. Ltd. filed a complaint

against CA. Posh to the Institute of Chartered Accountants of India (ICAI) that he has charged excessive
fees for the assignment’s comparative to the scale of fees recommended by the Committee as well as
duly considered by the Council of ICAI.
Answer Part I -- Relevant Standards & Laws
▪ Provisions of Chartered Accountants Act, 1949
▪ Council General Guidelines, 2008
Part II -- Requirements of Relevant Standards & Laws
➢ The prescribed scale of fees for the professional assignments done by the chartered accountants is
recommendatory in nature. Charging an excessive fee for a professional assignment does not
constitute any misconduct in the context of the provisions of the Chartered Accountants Act,
1949 and regulation made thereunder since the matter of fixation of actual fee charged in
individual cases depends upon the mutual agreement and understanding between the member
and the client.
Part III – Case Discussion
➢ In the given case, CA. Posh has charged excess fees comparative to the scale of fees recommended
by the Committee as well as duly considered by the Council of ICAI. In this context, it may be noted

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