Clause 2 – Part III – First Schedule Flashcards
Mr. X, a CA, employed as a paid Assistant with a CA firm. On 31 Dec 2021, he leaves the services of the firm.
Despite many reminders from ICAI he fails to reply regarding the date of leaving the services of the firm.
Failed to supply information called for:
Clause 2 of Part III of the First Schedule to the CA Act, 1949,
A member, whether in practice or not, will be deemed to be guilty of professional misconduct if he -
- does not supply the information called for, or
- does not comply with the requirements asked for, by the
1. Institute, Council or any of its Committees,
2. Director (Discipline),
3. Board of Discipline,
4. Disciplinary Committee,
5. Quality Review Board or
6. the AA.
In the given case, Mr. X has failed to reply to the letters of the Institute asking him to confirm the date of leaving the service as a paid assistant.
Conclusion:
Mr. X is held guilty of professional misconduct as per Clause 2 of Part III of the First Schedule to the Chartered Accountants Act, 1949.
X, a chartered accountant in practice, in spite of several reminders from the Secretary of
the Institute of Chartered Accountants of India fails to submit Form 18. Is he liable for
misconduct ?
Failure to Submit the Information: Clause (2) of Part Ill of the First Schedule
requires a member to supply the information called for by the Council or any of its
Committees and Clause (1) of Part II of the Second Schedule requires every member
of the Institute to act within the framework of the Chartered Accountants Act and the
Regulation made thereunder.
Under the former clause, it is misconduct for chartered accountants generally, if they do not
supply the information called for by the Council. The Secretary acts for the Council; hence,
request from the Secretary amounts to a request from the Council. Besides, it is also a
contravention of Regulation of the Chartered Accountants Regulations, 1988.
Thus, failure to submit Form 18 constitutes professional misconduct.
