Page 415 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

Chapter XVII : Guidelines for Corporate Form of Practice
ICAI Registration: The name of the Management Consultancy Company needs to be approved by the Institute
and registered with it. Guidelines and application forms for this process are provided.
Purpose: The Management Consultancy Company should engage solely in Management Consultancy & Other
Services. The Management Consultancy Company must provide an undertaking that it will render only the
services prescribed by the Council under section 2 (2)(iv) of the Chartered Accountants Act, 1949.
Equity Holding: There are no restrictions on the equity holding of the members in such a company, either
individually or with relatives.
Hold Office: The Council permits members to hold the office of Managing Director, Wholetime Director, or
Manager of a body corporate under the Companies Act, provided the corporate body is exclusively involved in
Management Consultancy and other services approved by the Council.
Full Time COP: Members can retain their full-time Certificate of Practice while holding these positions. They
are considered in full-time practice and can continue attest functions individually or in a
Proprietorship/Partnership firm.
Restrictions: Audit practice cannot be conducted in Corporate Form. Consultancy practice previously done in
Individual or Firm Status is now permitted in Corporate Form.
Ethical Compliance:
Prohibited Services: If the individual practitioner or firm is the statutory auditor of an entity, the Management
Consultancy Company should not accept internal audit, book-keeping, or other professional assignments
prohibited for the statutory auditor firm.
Non-audit Fees: The Notification No. 1-CA(7)/60/2002 dated 8th March, 2002 regarding the ceiling on non-
audit fees applies to a Management Consultancy Company.
Cl 6 & Cl 7: The Management Consultancy Company must comply with clauses (6) & (7) of Part-I of the First
Schedule to the Chartered Accountants Act, 1949 and any other directives issued by the Institute.
Undertaking: The Management Consultancy Company must provide an undertaking that it will comply with
the aforementioned clauses and directives.

(CNO-PE.1780) Council Guidelines for Advertisement, 2008
Purpose: Members may advertise their services, adhering to guidelines that uphold the profession's reputation
and truthfulness. The Institute of Chartered Accountants of India doesn't endorse the content or claims made.
ICAI not Responsible: Member(s)/Firm(s) should ensure that the write-up adheres to the guidelines and is
accurate. They should be aware that the Institute of Chartered Accountants of India does not approve or take
responsibility for the write-up's contents or claims.
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Conditions of Write-Up (Shortcut- C entral Region FCa Happily uses MEDIA) Apply Clause (7)
Compliance: The write-up must not violate any provisions of the Chartered Accountants Act, 1949, Chartered
Accountants Regulations, 1988, Code of Ethics, 2020, or any guidelines set by the Council.
Comparisons: Advertising must not include any disparaging references to others or make unsubstantiated
comparisons to their work.
Reputation of Profession: Advertising should not be of a nature that could harm the reputation of the
profession.
Font: The font size should not exceed 14
Claims: Members and the Firm should not make exaggerated claims about the services offered, or the
qualifications and experience of anyone associated with the Firm.
Honesty: Members and the Firm must ensure that their advertising is honest and truthful.
Monograms: Do not use monograms or catch words
Endorsements: Do not include any testimonials, endorsements, client names (past or present), or information
about fees charged.

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