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10 cases clarifying your CA profession's ethical boundaries so that you don't cross the thin line.
10 cases clarifying your CA profession's ethical boundaries so that you don't cross the thin line.
From a Chartered Accountant (CA) escaping penalty for unethical conduct in a personal share transaction to CAs facing disciplinary action for threatening clients, providing forged tax documents, and accepting audit assignments without following due process - the Institute of Chartered Accountants of India (ICAI) has grappled with defining the boundaries of professional misconduct for its members. While personal commercial transactions may not attract disciplinary action, conduct that brings disrepute to the profession, even if unrelated to professional duties, can be scrutinized. Delve with these cases into the nuances of what constitutes "professional misconduct" under the Chartered Accountants Act, 1949, and the extent of the ICAI's jurisdiction.
Article #11889: The Disciplinary Committee of ICAI imposed penalty on a CA for engaging in unethical conduct during a personal share transaction, but the High Court ruled that CA's actions, though deplorable, did not relate to professional duties and thus did not constitute "professional misconduct" under the Chartered Accountants Act, 1949. (Please right click here to read more)
Article #15628: The HC upheld the ICAI's jurisdiction to examine alleged misconduct by CAs that brings disrepute to the profession, even if unrelated to professional work, clarifying the scope of disciplinary proceedings. Here the CA had outraged the modesty of client's daughter. (Please right click here to read more)
Article #31190: In a long-standing dispute between two CAs, one CA faced disciplinary action for circulating abusive messages and audio recordings to professional bodies, underscoring that using objectionable language can constitute "other misconduct" and bring disrepute to the profession. (Please right click here to read more)
Article #11890: The court upheld the ICAI's decision to reprimand a CA for threatening a client with legal action over unpaid fees, emphasizing the importance of maintaining professional conduct even in fee disputes. (Please right click here to read more)
Article #31431: A CA was fined for providing forged tax receipts and returns to a client, depicting payment of income tax and filing of returns despite not actually doing so, a breach of professional integrity and ethical conduct.(Please right click here to read more)
Article #31063: The non CA complainants cannot appeal against disciplinary committee's decision in the High court because they lack locus standi. The HC upheld the ICAI's DC's decision to dismiss a bank's complaint against its former auditor, ruling that complainant bank lacks legal standing to challenge such decisions, highlighting the limited role of complainants in disciplinary proceedings.(Please right click here to read more)
Article #31066: This comprehensive guide explores the legal framework and disciplinary mechanisms for addressing professional misconduct by CAs, shedding light on the ICAI's role and the recent involvement of the National Financial Reporting Authority (NFRA) in investigating auditor misconduct.(Please right click here to read more)
Article #31067: A CA was found guilty of professional misconduct for accepting an audit assignment without ensuring the previous auditor's undisputed fees were settled, violating explicit guidelines and undermining professional integrity during auditor transitions.(Please right click here to read more)
Article #31064: A CA faced disciplinary action for accepting an audit appointment without settling the previous auditor's undisputed fees, a violation of professional guidelines that undermines trust and integrity in the auditing profession.(Please right click here to read more)
Article #31191: A CA was reprimanded for accepting an audit assignment without communicating with the previously appointed auditor, as required by the Companies Act, highlighting the importance of following due process during auditor transitions.(Please right click here to read more)
Article #31065: The Supreme Court upheld a rule allowing the ICAI's disciplinary board to overrule the opinion of the Director (Discipline) on complaints of professional misconduct, ensuring genuine complaints are not wrongly dismissed at the threshold.(Please right click here to read more)
