Articleship of CS by A practising Chartered Accountant

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Querist : Anonymous

Querist : Anonymous (Querist)

03 December 2010 Hi Sir/ Mam

I have taken COP of ICAI and now I Want to do Articleship of CS.

Can I do So while I m holding COP of CA Institute??

plz let me know if there is any miscounduct in this????

Ajay Mishra

Ajay Mishra (Expert)
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04 December 2010 Hi

A Chartered Accountant in practice is PROHIBITED:
• to pay commission/brokerage or share of profits of his professional business to/with any person other than a member of the Institute.
• from soliciting clients or professional work by circular, advertisement etc. except for advertisement as per the guidelines dt.14th May, 2008 issued by the Council
• from being Director of a Holding Company in whose subsidiary he is the auditor.
• from responding to advertisements inviting application for appointment of auditors, tenders or circulars or enquiry (made to more than one member) inviting quotation restricted to CA.

However members can respond to tenders in the areas where they compete with non CAs. They can also respond to tenders in the audit field outside the country provided the fees are received in foreign currency. The members are permitted to pay a reasonable amount as price for tender/bid document. In general no earnest money/security deposit is permissible in areas which are exclusive to Chartered Accountants as per Law. However, in non-exclusive area the members are permitted to pay earnest money/security deposit. If only Chartered Accountants are invited in non-exclusive area, the members are permitted to pay reasonable amount towards earnest money/security deposit.
• from expressing his opinion on financial statements of any business or enterprise in which one or more persons who are his ‘relatives’ within the meaning of Section 6 of the Companies Act, 1956 have, either by themselves or in conjunction with such member, a substantial interest in the said business or enterprise.
A Chartered Accountant in practice CANNOT:
• Use any designation other than Chartered Accountant on professional documents, visiting cards, letterheads or signboard. The Council has decided that a member of the institute shall not be permitted to use initials "CPA" (standing for Certified Public Accountant) on his visiting card.
• Charge fees on a percentage of profits or which are contingent upon the findings, or results of such work provided that.
a. In the case of a receiver or a liquidator, the fees may be based on a percentage of the realisation or disbursement of the assets.
b. In the case of an auditor of a co-operative society the fees may be based on a percentage of the paid-up capital or the working capital etc.
c. In the case of a valuer for the purposes of direct taxes and duties, the fees may be based on a percentage of the value of the property valued.
• Engage in any business other than the profession of chartered accountants unless permitted by the Council.
• Accept position as auditor previously held by another chartered accountant without first communicating with him in writing.
• Accept any other work/assignment/service on a remuneration, which exceeds the fees payable for statutory audit of the same undertaking. (Applicable only in respect of statutory audits of public sector undertaking/Govt. Companies/Listed companies/other public companies with turnover of Rs. 50 crores or more in a year for appointments after 1st April, 2002 — Ref: Notification No. 1-CA(7)/60/2002 published in CA Journal-March, ’02 issue).
• Accept or carry out any audit work involving receipt of audit fees (excluding reimbursement of expenses, if any) for such work of an amount less than what is specified hereunder:— (notification No.1-CA(7)/93/2006 published in CA journal on page 652 of October, ’06 issue):

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