Page 407 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

Separate Banking Account: A professional accountant is entrusted with client's funds (other than fees or
remuneration) during their engagement. It is their duty to deposit these funds in a separate banking account and
use them as per the client's instructions or intended purposes.
Short-term Expenses: Funds received for expenses meant to be incurred within a reasonably short time, such as
payment of statutory fees or purchase of stamp paper, do not need to be kept in a separate bank account.
Long-term Expenses: Funds received for expenses not intended to be spent within a reasonably short time
should be deposited in a separate bank account immediately.
Special Engagements: Funds received by a Chartered Accountant in roles such as trustee, executor, or liquidator
must be deposited in a separate bank account immediately.

PART II - Professional misconduct in relation to members of the Institute generally
(CNO-PE.1660) CLAUSE 1
A member of the Institute, whether in practice or not, shall be deemed to be guilty of professional misconduct,
if he -
Clause (1) contravenes any of the provisions of this Act or the regulations made there under or any guidelines
issued by the Council.
Rationale
Legal Framework of CAs: Every member of the Institute is required to act within the framework of the
Chartered Accountants Act, and the Regulations and Guidelines established by the Council.
Violation: Any violation of these Guidelines, the Act, or the Regulations by a member would constitute
misconduct.
The Regulations under which cases of contravention have generally come to the notice of the Council are the
following:
Regulations Related To Articles

Registration
Premium Prohibition: Principals are not allowed to ask for a premium to provide articleship.
Security Deposit Ban: It is against regulations for a principal to take a security deposit from an article's father
for articleship.
Loan Restriction: A principal should not loan from an article's family business for granting articleship.
Registration Rules: Principals are not allowed to register an article without a Certificate of Practice (COP) or
beyond the available vacancy.
Working hours
Flexible office hours: The facility of allowing flexible office hours has been withdrawn.
Min Time Limit: The normal working hours for articled assistants should not start after 11.00 A.M. or end
before 5.00 P.M.
Max Time Limit: The office hours of the Principal for providing article training should generally not be before
9.00 A.M. or after 7.00 P.M.
Weekly Hours: Articled assistants are expected to work 35 hours in a week, excluding the lunch break.
Exigencies of Work: In exceptional circumstances, an articled assistant may be required to work beyond their
normal working hours.
Maximum Hours: However, the aggregate number of working hours should not exceed 45 hours per week.
Compensatory Leave: If an articled assistant is required to work beyond 35 hours in a week, they are entitled to
compensatory leave, calculated with reference to the number of completed working hours over 35 hours per
week.
Other Work
College Timings: During working hours, the articled assistant is not permitted to attend college or other
institutions for pursuing any course, including graduation. The timings of such courses should not clash with
the normal working hours of the article training.

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