Page 372 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

Designation Usage: These members cannot use the designation 'Chartered Accountant' simultaneously with
the designations of the aforementioned Institutes.

(CNO-PE.880) Maintenance of Branch Offices (Section 27)
Requirement: According to Section 27 of the Act, if a Chartered Accountant in practice or a Firm of Chartered
Accountants has multiple offices in India, each office must have a member of the Institute in charge. (Whether
or not in practice)
Misconduct: It is considered professional misconduct if a member or firm fails to have a member in charge of
a branch office.
Separation: Each additional branch office must also have a separate member in charge.
Second Office Exemption.

Exemption: Chartered Accountants in practice may be granted an exemption to have a second office without it
being under the separate charge of a member of the Institute. (No exemption of 3 /4 th/5th office)
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Premises: The second office can be located in the same premises as the first office.
City: The second office can be located in the same city as the first office.
Distance: The second office can be located within a distance of 50 km from the municipal limits of the city
where the first office is located.
Declaration: If a member has two offices as mentioned above, they must declare which office is their main
office, serving as their professional address.
"Temporary Office for Hill Area Firms".
Establishment: Members/firms can open temporary offices in plain cities for a maximum of 3 months annually.
Without Separate In-charge.
Operation: The regular office remains operational during this period, handling all correspondence.
Display: The firm's name board at the temporary office should only be displayed during its functioning period.
No Representation: The temporary office should not be represented as a business place on letterheads, visiting
cards, or other documents.
Notification: Members/firms must inform the Institute about the opening and closing of the temporary office,
particularly before each winter.
Active Association of In-Charge
1A. Requirement of Association: The Chartered Accountant in-charge must be associated with the branch
either as a partner or a paid assistant.
1B. Full-time Employment: If a paid assistant, the Chartered Accountant must be in whole time employment
with the in-charge.
2A. Active Association: Section 27 requires the member to be actively associated with the office of a Chartered
Accountant or a firm.
2B. Criteria for Active Association: Active association is established if the member resides in same city or
attends the office for at least 182 days in a year.
2C.Executive Committee's Opinion: The Executive Committee can determine other circumstances that
establish active association.
Two Offices and Nameboard
Two Offices: A member can be In-charge of two offices if they are situated in the same accommodation.
Name-board Usage: The Council has decided that there are no restrictions on displaying a name-board at a
member's residence with the title of Chartered Accountant. However, the name-board or name-plate should
represent an individual member, not the firm.

(CNO-PE.920) KYC Norms for CA in Practice
Global Compliance: The financial services industry worldwide is obligated to adhere to Know Your Client
Norms (KYC norms).

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