Page 408 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

Permission for Additional Courses: Without the prior permission of the Council, obtained through an
approved form, an articled clerk is not allowed to take any other course of study or training, whether academic
or professional, or engage in any business or occupation during their service period.
Stipend
Stipend Payment: The stipend under this regulation is to be paid by the principal to the articled assistant.
Cheque Payment: One method of payment is by a crossed account payee cheque every month, against a stamped
receipt obtained from the articled assistant.
Bank Deposit: Alternatively, the stipend can be deposited every month in an account opened by the articled
assistant in their own name with a branch of the bank specified by the principal.
Some Important Regulations Related To CA's
CPE Hours Statement: The Institute of Chartered Accountants of India (ICAI) regularly announces the required
number of hours for continuing professional education (CPE) for practicing and non-practicing Chartered
Accountants (CAs), taking into account factors such as age.
Non-compliance Consequences: If these requirements are not met, ICAI can issue an advance notice and take
action against members. This would also constitute professional misconduct under Schedule 2 Part 2 Clause 1.
Coaching Restrictions: Members of the Institute engaged in coaching are advised not to undertake coaching
activities between 9.30 AM and 5.30 PM.

(CNO-PE.1680) CLAUSE 2
A member of the Institute, whether in practice or not, shall be deemed to be guilty of professional misconduct,
if he -
Clause (2) being an employee of any company, firm or person, discloses confidential information acquired in
the course of his employment except as and when required by any law for the time being in force or except as
permitted by the employer.
Rationale
Professional Dignity: Maintaining the confidentiality of information is crucial for upholding the profession's
status and dignity. Chartered Accountants must avoid disclosing confidential information to maintain public
confidence in the profession.
Law of agency: The situation is an application of the law of agency, a widely accepted principle.
Cop Holder: Regardless of full-time, part-time, or practice along with employment, a member guilty of
misconduct faces the same consequences.
Confidentiality: As employees, members may access confidential information. This information should be used
solely for performing their duties.

(CNO-PE.1700) CLAUSE 3
A member of the Institute, whether in practice or not, shall be deemed to be guilty of professional misconduct,
if he -
Clause (3) 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.
Rationale & Cases
False Information: A Chartered Accountant knowingly included false information in a document submitted to
the Institute Council. This action was deemed misconduct.
Misrepresentation: In the case of J.R. Chatrath (1952), a Chartered Accountant, who was employed as a manager
of a firm of Registered Accountants, falsely claimed to be a partner when applying for admission as a Fellow of
the Institute. This was considered misconduct.

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