“If he solicits clients or professional work either directly or indirectly, by circular, advertainsyemotehnet; personal communication or interview or by means”. It is an elaboration of the principle propounded in the earlier nile, enjoining that for securing professional work not only the help of others should not be sought, but also advertisement in any forzi should not be indulged in. Such a restraint must be practiced so that members may maintain their independence of judgement and may be able to command the respect of their prospective clients. According to this clause, a member cannot try to secure professional business by sending circulars to clients, interviewing or contacting people or by advertising, etc. (Gadre v. Amedkar) In Re. K. C., Satyabadi, 1955 a Chartered Accountant wrote to the Ministry of .Commerce and Industry that the name of the firm may be included in the panel of auditors and he was held guilty of professional misconduct. Similarly, in Re. B.K. Swami, 1960, when a Chartered Accountant sent a letter with a request for appointment as auditor, it was held that it amounted to professional misconduct.
Clause (7) : “If he advertises his professional attainments or services, or uses any designation or expression’ except that which is permitted by the Institute or recognised by the Central Government. Thus, the use of such phrases as “Recognised auditor of educational institutions” or “specialist on Income Tax or Sales Tax” on letter heads, visiting cards and signboards is prohibited. Clause (8) : “If he accepts position as audit or previously held by another Chartered Accountant or a restricted state auditor without first communicating with him in writing”. This clause clearly states that an auditor who is appointed by a limited company in place of an existing auditor will be guilty of professional misconduct if he accepts the appointment without Clause (2) of the of his employment except and w nfidential employer. law or except would be guilty A member, in the foregoing circumstances, misconduct egardless of the fact that he was in time employment on whole or that he was carrying practice of account : ar;u along with his employment. These are simple rules of ethics; the first two have already considered in relation to members in practice underClauses
(2) i (3) in Part I of the First Schedule. The third clause is an adaptati of the well-accepted principle of the law of agency. If members are associated with societies or trade associations whiff offer their members preliminary advice on matters of accountancy taxation for which no charge is made, a member who makes use such a position- for the purpose of securing business would be gull of professional misconduct. Part III Professional Misconduct in Relation to All Members of the Institute A member of the Institute, whether in practice or not, should guilty of misconduct if —(a) he furnishes false information whether in the form of statemen returns etc. to the Institute knowing it to be false (Clause 1). (b) he must not style himself as Fellow of the Institute when is fact he is not (Clause 2). (c) he fails to furnish information when the council to comply with the requirements asked for by asks for or fails Y the council or any of its committees (Clause 3). Professional Misconduct Requiring High Court Action 3. Enumerate the various instances of professional Accountants in Practice which do not require action by a misconduct of Chartered Part 1 of the Second Schedule of the Chart d Court. 1949, specifies instances of professional misconduct of Chartered bartered High Accountants Act, Accountants which must be referred to a High Court for adjudication.