Page 365 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

(CNO-PE.540) Provisions of Confidentiality under Chartered Accountants Act, 1949
Practice Misconduct (Clause 1, Part I of Second Schedule to The Chartered Accountants Act, 1949)
• Chartered Accountants in practice are deemed guilty of professional misconduct if they disclose client
information without consent or unless required by law.
Service Misconduct (Clause 2, Part II of Second Schedule to The Chartered Accountants Act, 1949)
• Chartered Accountants in service, whether in practice or not, are deemed guilty of professional misconduct
if they disclose confidential information acquired during their employment, except when required by law
or permitted by the employer.

(CNO-PE.560) Documentation Requirements in NOCLAR:
Understanding: Prepare documentation that provides a clear understanding of important issues that arose
during the audit, including the conclusions reached and the professional judgments made in reaching those
conclusions.
Discussions: Document discussions with management, those charged with governance, and others, including
details such as the nature of the significant matters discussed, when the discussions took place, and with whom.
Management Response: How management/those charged with governance have addressed the matter at hand.
Accountant Response: The steps taken by the accountant in considering the situation, the judgments made,
and decisions taken, taking into account the reasonable and informed third-party test.
Public Interest: How the accountant ensures that the responsibility towards public interest has been met.
Standards on Auditing: Apart from above requirements, Auditor has to do documentation as per Standards on
Auditing. Which generally requires documentation of Suspected or Actual Non-Compliance, if it’s a Significant
matter sufficient details for understanding matter & how Significant Judgements were made to draw conclusion.
Also discussions with management & TCWG.

(CNO-PE.580) Membership of The Institute
Application: The Council accepts the applicant's application for membership.
Registration: The applicant's name is entered into the Register.
Certification: A certificate of membership is issued to the applicant.
Details: The Register includes member's full name, date of birth, domicile, residential and professional address,
date of entry, qualifications, and whether they hold a Certificate of Practice (COP).
Additional Information: The Register may contain any other prescribed particulars about the member.

(CNO-PE.600) (SEC 8 Disqualification CA ACT )Disabilities for the Purpose of Membership
Age Limit: A person must be at least 21 years old to be registered.
Unsound Mind: Individuals adjudged by a competent court as being of unsound mind are ineligible.
Insolvency: Undischarged insolvents or discharged insolvents without a court certificate stating their insolvency
was due to misfortune without misconduct cannot be registered.
Criminal Convictions: Individuals convicted of an offence involving moral turpitude or a non-technical offence
in their professional capacity, unless pardoned or disability removed by the Central Government, are barred.
Professional Misconduct: Removal from the Institute due to professional or other misconduct disqualifies a
person for a specified period. Non-disclosure of any of these disqualifications is considered professional
misconduct and may lead to removal from the Register of Members.
For knowledge: When person is not able to pay his/her liabilities, person can go to court and prove that his/her
liabilities are more than assets then court will declare him insolvent
Further, person can request court to take control of assets and sell them and pay creditors and discharge him
from any unpaid liabilities when court completes - this proceeding then person is called discharged insolvent.

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