Chartered Accountants Act and Regulations
1. Provisions
- Statute
- The Chartered Accountants Act, 1949.
- As amended by The Chartered Accountants (Amendment) Act, 2011)
(updated as on
1st July, 2013).
- The Chartered Accountants Regulations, 1988.
- Membership Eligibility (Ss. 4 & 8 and Regn.
4)
- The applicant should have
- Completed prescribed period of practical training.
- Passed the CA Final Examination.
- Attained twenty-one years of age.
- Completed the course on General Management & Communication
Skills (GMCS)
- Applied in Form 2, with the prescribed membership and entrance
fees.
- Eligibility to join the CA Course & Examinations
(Regn. 45)
- Eligibility for Common Proficiency Test (CPT) (Regn. 25C & 25D) –
May enroll for the course if passed Class 10 examination. May appear for
CPT after appearing for Senior Secondary Examination (10 + 2)
Examination or while positive result of the same is awaited. CPT
Examination will be generally conducted two times a year (student who
has got himself registered 60 days prior to the first day of the month
in which CPT examination is to be held i.e. on or before 1st April and
1st October, can appear in the CPT examination to be held in June and
December respectively). It is a test of four subjects viz., Accounting,
Mercantile laws, General Economics and
Quantitative Aptitude (tests the basic knowledge in these subject
areas).
- Eligibility for Registration as Articled /Audit Assistant: Such a
person has passed CPT and Group I of IPCC. CA student has to complete
100 hrs. or I.T.T. course and 35 hrs. of orientation course before
joining articleship.
- Integrated Professional Competency Course (IPCC)
- Requirements for IPCC Registration.:
Pass in 12th
standard and CPT Exam (or Entrance/Foundation/PE-I)
- Requirements for appearance in IPCC Exam
Completion of 8
months study course
- Direct Entry to Chartered Accountancy Course
Exempted Categories: The following categories of students
shall be exempted from passing the Common Proficiency Test (CPT):
- Graduate or Post Graduate in Commerce having secured in aggregate a
minimum of 55% of the total marks or its equivalent grade in the
examination conducted by any recognised University (including Open
University) by studying any three papers of 100 marks each out of
Accounting, Auditing, Mercantile Laws, Corporate Laws, Economics,
Management (including Financial Management), Taxation (including Direct
Tax Laws and Indirect Tax Laws), Costing, Business Administration or
Management Accounting; or
- Graduates or Post Graduates other than those falling under Commerce
stream mentioned above having secured in aggregate a minimum of 60% of
the total marks or its equivalent grade in the examination conducted by
any recognised University (including Open University)
OR has passed the intermediate level exam of ICWA or ICSI.
For more details, please visit
website www.icai.org (BOS/Announcement/227/12(1) dated 16th August, 2012.
- Final Examinations (Regn. 29)
Examination held in May and November every year. Conditions for
eligibility as given below:
- Should have passed Intermediate/PE-II Examination/ Professional
Competence Examination (PCE)/IPCC
- Should have completed or is serving the last twelve months of
Articleship as on the first day of the month in which the examination is
held. (applicable in case of three years articleship; i.e., for the
students who commence articles after PE II)
- Should have completed or is serving the last 6 months of articleship
as on the first day of the month in which examination is held
(applicable to students who commence articles after CPT, for a period of
three and half years OR IPCC for a period of 3 years)
- Members Entitlement to train articled
assistant
(Regn. 43)
Eligibility requirement for member giving practical training
- Member should be in full time practice.
- No. of trainees (articled assistants) given below :
No. of years in Practice |
No. |
0-3 years |
1 |
3-5 years |
3 |
5-10 years |
7 |
10 yrs. and above |
10 |
In addition to the above full-time salaried employees who have continued as
employee with the same employer for 3 years as on the date of registering as
articled assistant shall also be entitled to give practical training as under –
Total number of members – irrespective of whether associate
or fellow, who are full time salaried employees |
Entitlement for articled trainees |
Up to 100 |
1 per employee |
Between 101 and 500 |
100 + 50% of the number of such employees above 100 (i.e., a maximum
of 300) |
From 501 or more |
300 + 20% of the number of such employees above 500 |
In case of discontinuance of practice, or resignation of partner such member
shall not be entitled to train article assistant/s for the balance of their
training period. Such articled assistant/s will continue to be trained in the
same firm even though the other partners are already training up to their
maximum entitlement.
- Practical Training Record (Regn. 64)
A monthly record of practical training of the Articled/Audit Assistant is
required to be maintained w.e.f. 1-4-1995 in respect of all articled
trainees commencing articles thereafter.
- A monthly training record specifying the areas in which the articled
assistant has obtained work experience with corresponding No. of days is
to be maintained by the member in charge of training (MIT) or Principal.
- A report of the practical training on the basis of such monthly
record is to be enclosed with Forms 108/109 [Regulations 64(1) & 64(2)],
in all cases of completion/termination.
(Refer Training Guide issued by the Institute)
- Stipend for Articled Assistant (Regn. 48)
Minimum monthly stipend as shown below (w.e.f. 23rd January, 2015)
Population of normal place of service |
1st year |
2nd year |
3rd year |
20 lakh or above |
2,000 |
2,500 |
3,000 |
4 lakh or more but below 20 lakh |
1,500 |
2,000 |
2,500 |
Below 4 lakh |
1,000 |
1,500 |
2,000 |
Payment to be made by account payee cheque or credit to bank account of
articled assistant. Stamped receipt to be obtained by principal.
Population figures on the basis of last published census figures.
- Leave (Regn.59)
Entitlement of leave** = Period worked (excluding leave) /6
** Subject to a maximum entitlement of 180 days leave for three and half
years articleship and 156 days for three years articleship. Stipend is
payable only for such period and not for period of excess leave taken.
- Period of training (Regn. 50, 71)
Article assistant 3 years & 6 months for PCC students, 3 years for PE-II
qualified students. 3 years for IPCC – GI qualified students
Audit assistant 56 months for PCC students and 4 years for PE-II/ IPCC
qualified students
- Transfer/Termination of Articleship
[Regulation 56(1)]
In partial modification of the announcement dated 30th June, 2009
regarding transfer/termination of articles the Council in its recent meeting
has decided that the transfer/termination of articleship in terms of
Regulation 56(1) of the Chartered Accountants Regulations, 1988 shall be
permissible on the grounds as stated below: –
- Transfer /termination of articles is permitted without any
restriction during the first year of articles.
- During rest of the articleship period on satisfying anyone or more
of the conditions as stated below: –
- Medical grounds requiring discontinuance of articles for a
minimum period of three months (on production of a Medical
Certificate issued by a Government Hospital).
- Transfer of parent(s) to another city.
- Misconduct involving moral turpitude.
- Other justifiable circumstances/reasons: –
- Grounds already permissible in the Chartered Accountants
Regulations, 1988 (on submission of requisite proof of the Act
warranting transfer/termination of articleship): –
- Industrial Training (Regulation 51)
- Secondment of articles (Regulation 54)
- Conversion from PCC to IPCC (for termination of articles
only.
Re-registration of articles to be allowed only after passing
Group-I of IPCC)
- Death of Principal [Regulation 57(1)(c)]
- Ceasing of practice by the Principal [Regulation
57(1)(a)]
- Removal of name of the Principal from the Register of
Member due to any reason [Regulation 57(l)(b)]
- Marriage (only if there is relocation to another city
involving distance of 50 kms).
- Irregular payment or non-payment of stipend with reference
to Regulation 67.
- Articled assistant desires to serve balance period of
training outside India.
- Shifting by the Principal to another city involving distance
more than 50 kms.
The articled assistants are required to get the consent of the Institute
before getting Form 109 signed by the Principal in their own interest.
The request, on anyone or more of the aforesaid grounds of an articled
assistant on a plain paper along with the recommendation/ consent of the
Principal for transfer / termination of articleship accompanied by
evidence/proof (self-attested by the articled assistant) to the satisfaction
of the Institute be made. Request for transfer not accompanied by consent of
Principal shall not be accepted. Not applicable in case of Transfer for
Industrial Training
In case of dispute between Principal and articled assistant, the matter
be settled amicably among the articled assistant and the Principal concerned
and the Institute shall not interfere in such cases.
- Training in Industry (Regn. 51, 72)
- Eligibility: Articled or audit assistant passing
Intermediate/PE-II/PCC/IPCC Examination.
- Period: Minimum period may range between 9 and 12 months during last
year of practical training.
- Only with recognised financial/commercial/industrial undertaking
with minimum fixed assets of ₹1 crore or minimum total turnover of ₹10
crore or a minimum paid-up share capital of ₹ 50 lakh or in any other
institution or organisation approved by the Council.
- Training under a member of the Institute who has been a member for
continuous period of at least three years. (Associates-1 trainee.
Fellows- 2 trainees)
- Intimation of intention to Principal under whom serving earlier, at
least three months in advance.
- Agreement in triplicate in Form 104 to be executed.
- Office hours (Regn. 60)
- An articled assistant shall work 35 hours per week.
- The articled assistant should undergo practical training in accordance
with the guidelines of the Institute between 9.30 a.m. and 5.30 p.m.
- The articled assistant shall not be permitted to attend colleges/other
institutions for graduation or any other course between 9.30 a.m. and 5.30
p.m..
- Every articled/audit assistant shall submit, once in a year, a specific
declaration duly countersigned by the Principal to the effect that he is
regularly attending training and his college hours do not clash with his
articles timings and that no coaching is undertaken by him between 9.30 a.m.
and 5.30 p.m. on any working day.
- Other courses of study during training
(Regn. 65)
- Cannot be undertaken without prior permission of the Council of the
Institute.
- Permission is normally granted on a specific prior application in
Form 112 for permission in respect of all courses other than those
specified in a negative list that may be specified by the Council from
time to time.
- In case of attending of regular classes, the same should be outside
normal office hours.
- Only one course permitted at a time during training period.
- In the event of breach of guidelines and not taking permission as
required, the articles already undergone shall be derecognised for such
period as the Institute may decide. In case an articled assistant is
found not undergoing articles in the manner prescribed, he shall be
debarred from appearing in the exam up to 3 consecutive exams besides
cancellation of such period of articles. The concerned member who
allowed him to be such an articled assistant be subject to punitive
action besides withdrawing either partly or fully his eligibility to
train articled assistant. In Peer Review, the reviewer be required to
verify whether training is imparted to the articled assistants in the
manner prescribed.
Other occupation during training (Regn. 65)
- Cannot engage without permission of Council.
- Permission normally granted for being sleeping partner in a firm,
directorship in a family company and lectureship in college (not exceeding 9
hours per week) in subjects
useful for CA course, subject to fulfilment of certain conditions.
Implementation of New GMCS Programme
The Council has decided that the General Management and Communication Skills
(GMCS) Programme, presently being organised for 15 days for the CA students
should be organised twice during the period of articled training as under:
- GMCS-I (15 days) – during 1st year of articled training
- GMCS-II (15 days) – after completion of 18 months of training but before
completion of articled training
In view of the same GMCS-I & II Programmes will be implemented in respect of
those students, who will be registered for articled training on or after 1st
May, 2012. Students, who are undergoing articled training or have been
registered for articled training prior to 1st May, 2012 shall be governed by the
existing GMCS Scheme. The fee for each programme of GMCS I & II shall
be ₹ 9,000/- only.
Miscellaneous
- Secondment
- The articled assistant can be seconded to another
member eligible to train articled assistant/s by mutual consent. Student has
to submit form for secondment to his Principal who after completing the same
has to submit the same to Regional Office of ICAI.
- The Principal can, with the prior consent of the articled
assistant/s, second the articled assistant/s to another eligible member as
per above procedure.
The member to whom the articled assistant/s is seconded to should be
eligible to train articled assistant/s.
Maximum articled assistant/s a member can train in case of secondment
shall be 2.
Aggregate period of secondment shall not exceed 1 year, minimum duration
under one member should be four months.
In case secondment done to a member in an industry the period shall not
exceed 1 year.
Principal to
- Pay the stipend during secondment
- Keep record of training undergone in secondment.
No need to execute a separate deed in case of secondment.
2. Commonly Used Forms
Form No. |
Description |
Stamp Duty |
Gujarat |
Maharashtra |
Fees* |
₹ |
₹ |
₹ |
2 |
Application for Associate Membership |
– |
– |
2,000 (Entrance) 1,500 (Annual) |
3 |
Application for Fellow Membership |
– |
– |
2,500 (Entrance) 3,000 (Annual) |
6 |
Certificate of Practice
– as an Associate Member
– as a Fellow Member |
–
– |
–
– |
3,000
4,000 |
9 |
Application for Restoration of Membership"
(i) within 3 years of removal
(ii) after 3 years of removal but before 5 years
(iii) after 5 years of removal |
–
–
– |
–
–
– |
1,200
3,000
4,000 |
18 |
Particulars of offices and firms |
– |
– |
– |
101 |
Restoration of Certificate of Practice |
|
|
|
102 |
Agreement for Articled Assistantship |
100 |
100 |
|
104 |
Agreement for Industrial Training |
100 |
100 |
|
105 |
Completion/Termination of Industrial Training |
|
|
|
107 |
Supplementary Deed of Articles (on account of excess
leave) |
50 |
50 |
|
108 to 113 & 117 |
Completion of Articled Assistantship,Terminations;
Other engagements; Registration of Audit assistant; Approval of Firm
Name |
– |
– |
– |
*Notwithstanding the rates of annual membership fee specified for associate
and fellow member above, a member who attained the age of 60 years and above as
on the 1st day of April of the relevant year, but not holding the certificate of
practice shall pay such annual membership fee at the rates specified below :-
Associate Member – ₹ 1,100/-
Fellow Member – ₹ 2,300/-
The aforesaid revised rates of fees shall come into force with effect from
1st April, 2017.
Recommended scale of fees for work done by Chartered Accountants
(Refer to guidelines of ICAI Committee for Capacity Building of Members in
Practice)
3. Students Fees Payable
All fees are to be paid by demand draft favouring "The Secretary, Institute
of Chartered Accountants of India" payable at Mumbai unless indicated otherwise
or online payment can be made.
A. Fees payable under the New Scheme of
Education & Training |
|
Indian Students (₹) |
Foreign Students $ |
- For CPT
|
6,000 |
580 |
- b. Fee for enrolment for Final Course
|
|
|
- After passing PCC
|
8,500 |
600 |
- After passing IPCC
|
*12,000 |
**750 |
|
*₹ 2000 of ₹ 12000 is articles registration fees |
** $ 50 of $ 750 is articles registration fees |
Fee structure for IPCC/ATC |
|
|
- Both Groups of IPCC (without Articles)
|
9,000 |
$ 550 |
- Both Groups of IPCC and ATC (without Articles)
|
10,000 |
$ 600 |
- Group I of IPCC
|
8,000 |
$ 500 |
- Group II of IPCC (without Articles)
|
8,000 |
$ 300 |
- Group II of IPCC (with Articles)
|
7,000 |
$ 400 |
- ATC
|
10,000 |
$ 600 |
B. Examination |
₹ |
₹ |
|
One Group |
Both Groups |
PCC/IPCC |
₹ 1,500 |
₹ 2,700 |
FINAL |
₹ 1,800 |
₹ 3,300 |
ICAI discontinued physical exam forms from May 2017,
exam application and fee payment can only be made online. |
4. Code of Ethics – Some Provisions
Sr. No. |
A practising CA CANNOT |
A practising CA CAN |
1 |
Solicit work |
Give his audit report to the client on his letterhead |
2 |
Give a client's balance sheet on his letterhead. |
Use a prescribed logo on visiting cards, letterheads, etc. |
3 |
Describe on his letterhead or visiting cards association with other
Indian/Foreign firms. |
Describe himself as a CA. in greeting cards and invitation cards.
Can use the prefix CA. before his name. |
4 |
Use a firm name not approved by the Institute |
Advertise in the official Yellow pages brought out by the telephone
authorities. |
5 |
Have his name displayed in Yellow pages in bold. |
Display his firm's name board in a manner that it does not smack of
advertisement. |
6 |
|
Advertise as per the notified guidelines. |
Website
The Institute has permitted each member to
- Establish their own websites
- Ensure that their Websites are run on a 'pull' model and not a 'push'
model of the technology
- Ensure that any person who wishes to locate the member would only have
access to the information
- Ensure the information should be provided only on the basis of specific
'pull' request.
Tenders
Sr. No. |
The Practising CA CANNOT Respond to |
CAN Respond to Advertisement / Circular/Tenders or enquiries |
1 |
Advertisements inviting applications for appointment of
auditors |
In other areas when competing with non CAs. |
2 |
Tenders or circulars or enquiry (made to more than one
member) inviting quotations restricted to CA |
If the same has been sought by World Bank/IMF/ADB/Other
similar International Body /Govt. Co. or Agency/Autonomous Body
sponsored or regulated by the Govt./Nationalised Institution. |
3 |
|
In case of any other services, including audit services
to be provided out of country |
4 |
A CA cannot pay earnest money/security deposit in areas
which are exclusive to CA as per law |
A CA can pay
- A reasonable amount as price for
tender/bid document.
- Earnest money/security deposit in other areas open to both
Chartered Accountants and other professionals at their discretion.
- Reasonable amount towards earnest money/security deposit, if any CAs are recruited in non-exclusive area.
|
A practising CA
- CAN be a director simpliciter in a company without prior permission of
Council.
- CAN be a promoter or promoter director in a company without prior
permission of Council.
- CAN be a Managing Director or Wholetime Director of a company with prior
permission of Council. This permission is granted if such CA. and/or
relative do not have substantial interest (i.e., more than 20%) in the
company. However, w.e.f. 1-4-2005 the member is not permissible to do attest
function.
Sr. No |
A practising CA CANNOT |
A practising CA can |
1. |
Accept contingency or percentage based fees, except in
the following cases: A. A liquidator can accept his fee based on
percentage of realisation of assets
B. An auditor of a co-operative society can accept fees based on
percentage of paid-up capital, working capital, gross income/profits, or
net income/profits
C. A valuer for direct tax purposes can accept fees based on the
value of property valued. |
CAN share fees with other practising CA. but not with
others. |
RULES OF NETWORK AND MERGER–DEMERGER
Refer to ICAI-Revised Guidelines of Networking-updated on 12th October, 2015.
Practical framework of Network
- Network is coming together of two or more firms to facilitate the better
professional functioning of the affiliate member firms.
- The Network is formed by two or more Firms registered with ICAI.
- The approval of name is carried out by filing of Form 'A'
- The Network is named by having the prefix "Affiliates/Members of ......"
before the name of the network.
- The Network is registered by making an Application in Form "B". The
Application has to be signed by the Authorised Partners of all the firms
constituting the Network.
- Only 1 Network is permissible per Firm amongst Indian firms.
- The Network with a Foreign Firm is to be registered by Filing of Form
"D" with ICAI by the Indian Firm.
- Only 1 Network is permissible with a foreign firm.
- The withdrawal from the Network by any Firm can be done by Filing Form
"C".
Practical Framework of Mergers
- The Rules of Merger & Demerger are as notified by ICAI.
- The Merger takes place by Registration of a Merger Agreement in Form "E"
to be submitted to ICAI.
- The Merger Agreement has to be filled within 30 days of the
reconstituted Partnership Deed.
- Demerger can take place only if 75% or more of the Partners agree to
Demerge.
- The Demerger takes place by submission of Form "F". Demerger cannot take
place after 5 years of Merger.
5. Audit
Firm size (No. of partners) |
Min. Audit fees on basis of City Populn. |
(At least 1 partner must have held certificate for min. 5 yrs.) |
20 lakh and above |
Others |
4 or more but less than 8 |
₹ 5,000 |
₹ 3,000 |
8 or more |
₹ 9,000 |
₹ 6,000 |
Audits excluded from above restriction
- Charitable institutions, clubs, prov. funds, etc.*
* Earlier this exemption applied only if the above
audits were honourary. This requirement has now been removed.
- Bank branch statutory audit of branches of banks including regional
rural banks.
- Newly formed concerns for first two years from date of commencement of
operations.
- Certificate/audit under Income-tax Act or other attestation work carried
out by statutory auditor.
Appointment of Auditors – Section 139 of Companies
Act, 2013
- Instead of reappointment at each AGM, auditor to be appointed for a
block of five years.
- Reappointment needs to be ratified at each AGM.
- Appointment shall be made taking into recommendations of the Audit
Committee/Board
- At each AGM, CA members will have option to:
- Rotate Audit partner/team
- Appoint joint auditor
- Maximum of 20 companies (including private limited companies) can be
audited by an individual Auditor
- Auditors need to provide a written consent and also indicate whether
they satisfy the criteria provided in Section 141 of Companies Act, 2013
- Firm includes an LLP incorporated under the Limited Liability
Partnership Act, 2008
Rotation of Auditors – Section 139 of Companies Act, 2013
- Mandatory auditor rotation
- Companies covered by rotation (Listed companies, unlisted public
companies with paid-up share capital > ₹ 10 crore, private limited
companies with paid-up share capital > ₹ 20 crore, all companies having
public borrowings from banks/financial Institutions or public deposit
> ₹ 50 crore)
- While a partnership firm would be eligible for two consecutive five year
terms an individual auditor would be eligible for one such term.
- Term prior to commencement of Companies Act, 2013 will be
retrospectively reckoned for computing 5-10 year validity.
- After completion of audit engagement term, the Auditor will be subject
to a continuous five year cool off period.
- Incoming auditor cannot be an associate or from same network as the
outgoing auditor.
- If a partner who is in charge of an audit firm and also certifies the
financial statements of a company, retires from the said firm and joins
another firm of chartered accountants, such other firm shall also be
ineligible to be appointed for a period of five years.
- Transaction period of three years set to implement the change.
- Where a company has appointed two or more persons as joint auditors the
rotation shall be done in such a manner that all of the joint auditors do
not complete their term in the same year.
Disqualification and Independence criteria – Section 141 of Companies
Act, 2013
If:
- Officer/employee of company (or partner of/in employment of such person)
- Auditor in more than 20 companies
- Convicted by Court
- Body Corporate, other than LLP
- Holding security of/interest in or indebted to company/its
subsidiary/associate/holding company/subsidiary of its holding company
exceeding ₹1 lakh / ₹5 lakh.
- Person whose relative is Director/KMP of company
- Full time employment elsewhere
Non-audit services – Section 144 of Companies Act, 2013
The following are the prohibited services by auditor and related entities,
the transition period is 1 year:
- Management services
- Outsourced financial services
- Design and implementation of financial information system
- Investment advisory
- Actuarial services
- Investment banking
- Internal Audit
- Accounting & Book-keeping
- Any other prescribed service
Prohibition extends to holding and subsidiary companies .
All non-audit services to be approved by Audit Committee or Board of
Directors
Duties and Liabilities of auditors – Sections 143 and 147 of
Companies Act, 2013
Sr. No. |
Duties of Auditor u/s . 143 of the New Companies Act, 2013 |
Liabilities of Auditor u/s. 147 of the New Companies Act,
2013 |
1 |
Auditor to report on specified matters, in the audit
report |
Contravention of provisions punishable with fine not
less than ₹ 25,000 up to ₹ 500,000 |
2 |
Responsibility to report offence involving fraud to the
Central Government |
In case of wilful or contravention done knowingly or
with wilful intent to deceive, imprisonment up to one year and fine not
less than ₹ 100,000 but which may extend up to ₹2,500,000 |
3 |
National Financial Reporting Authority can specify
additional matters for reporting |
If convicted also liable to refund remuneration and
liable to pay damages (to company, statutory bodies or authorities)
arising out of the incorrect reporting |
Fraud reporting requirements – Section 143 and Rule 13 of Companies
(Audit and Auditors) Rules
- Auditor to report within 2 days of knowledge of fraud to Board/Audit
Committee
- Reporting of frauds by auditor involving amount more than ₹ 1 crore
- Audit Committee/Board must give response to Auditor within 45 days
- Within 15 days of receiving response, Auditor must report to Central
Government the response along with his/her comments.(report even if no
response is received)
- Reporting of frauds by auditor involving amount less than ₹1 crore
- Auditor must report to the Board/Audit Committee describing Approximate
amount involved; and Parties involved
- Board Report to disclose: nature of fraud, approximate amount, parties
involved, if remedial action not taken and remedial action taken.
- Fraud reporting provisions apply also to secretarial, cost auditors,
branch auditor and internal auditor
- In case of non-compliance with the reporting obligation on frauds
punishable with fine not less than ₹ 1 lakh but which may extend up to ₹ 25
lakhs.
Tax Audit under Income-tax Act
- Firm of CAs not to accept more than 60 tax audits per partner.
- Member not to accept more than 60 tax audits.
- Record of Tax Audit Assignments to be maintained. (Refer ICAI Journal
May, 2003 page 1127 for the format)
- Tax Auditor cannot act as an Internal Auditor.
6. Other activities
Sr. No. |
A practising CA CANNOT |
A practising CA CAN |
1 |
Carry on any other business except with prior
permission of the Council. |
Be involved in business through HUF so long as he is
not Karta of HUF. |
2 |
Act as portfolio manager for his client. |
Carry on the profession of practising Chartered
Secretary, Cost Accountancy or as an advocate with prior permission of
the Council and provided the other professional body permits the same. |
3 |
|
Be the author of any books or articles and act as
editor of professional journals. |
4 |
|
Hold office in an honourary capacity in a charitable,
educational or other non-commercial organisation. |
Disclosure
Sr. No. |
A practising CA CANNOT |
A practising CA SHOULD |
1. |
Disclose confidential information relating to client to a third
party without client's permission or unless he is required to do so
under law. |
Disclose his interest if any in his report, before expressing his
opinion on the financial statements of a concern in which his relatives
as defined under section 6 of the Companies Act, 1956 or such relatives
along with himself are substantially interested. |
7. Continuing Professional Education – CPE hours requirement for
the block period of 3 years (1st January, 2017 – 31st December, 2019)
- All the members (aged less than 60 years) who are holding
Certificate of Practice (except all those members who are residing
abroad) are required to:
- Complete at least 120 CPE credit hours in a rolling period of
three years.
- Complete minimum 20 CPE credit hours of structured learning in
each calendar year.
- Balance 60 CPE credit hours (minimum 20 CPE credit hours in each
calendar year) can be completed either through Structured or
Unstructured learning (as per Member's choice)
- All the members (aged less than 60 years) who are not
holding Certificate of Practice and all the members who are residing
abroad (whether holding Certificate of Practice or not) are required to:
- Complete at least 60 CPE credit hours either structured or
unstructured learning (as per Member's choice) in rolling period of
three years.
- Complete minimum 15 CPE credit hours of either structured or
unstructured learning (as per member's choice) in each calendar
year.
- All the members (aged 60 years & above) who are holding
Certificate of Practice, are required to:
- Complete at least an aggregate of 90 CPE credit hours of either
structured or unstructured learning (as per member's choice) in a
rolling period of three years.
- Complete minimum of 20 CPE credit hours being an aggregate of
either structured or unstructured learning (as per member's choice)
in each calendar year.
- The following class of members are exempted from CPE credit
hours requirement:
- All the members (aged 60 years and above) who are not holding
Certificate of Practice.
- Judges of Supreme Court, High Court, District Courts and
Tribunal
- Members of Parliament/MLAs/MLCs
- Governors of States
- Centre and State Civil Services
- Entrepreneurs (owners of business (manufacturing) organisations
other than professional services)
- Judicial officers
- Members in Military Service
- Temporary Exemptions:
- Female members for one Calendar year on the grounds of pregnancy
- Physically disabled members on case to case basis having
permanent disability of not less than 40% and above (Supported with
medical certificates from any doctor registered with Indian Medical
Council with relevant specialisation as evidenced by Post
Qualifications (M.D., M.S. etc.).
- Members suffering from prolonged critical diseases/illnesses or
other disability as may be specified or approved by the CPEC.
(Supported with medical certificates from any doctor registered with
Indian Medical Council with relevant specialisation as evidenced by
Post Qualifications (M.D., M.S. etc.)
- CPE Portal
The CPE Portal (http://www.cpeicai.org) has been developed to
facilitate the members in keeping themselves updated with their CPE
credit hours.
The members can view the status of CPE hours by logging into the CPE
Portal using their User ID and password and verify their CPE attendance.
The portal also provides the information on upcoming events across India
and abroad organised by various POUs such as Central Committees,
Regional Councils, Foreign Chapters, CPE Chapters, CPE Study Circles and
CPE Study Groups.
8. Peer Review
INTRODUCTION AND DEFINITIONS
Peer Review means an examination and review of the systems and procedures to
determine whether they have been put in place by the Practice Unit for ensuring
the quality of assurance services as envisaged by the Technical, Professional
and Ethical Standards and whether the same were consistently applied in the
period under review.
Practice Unit means members in practice, whether practising individually or a
firm of Chartered Accountants.
Assurance Services means assurance engagement services as specified in the
"Framework for Assurance Engagements" issued by the Institute of Chartered
Accountants of India. There are certain specific exclusions like Management
Consultancy Engagements, Representing a client before the authorities, etc.
Technical, Professional and Ethical Standards mean and include:
- Accounting, Standards issued by the ICAI and/or prescribed and notified
by the Central Government of India;
- Standards issued by the ICAI;
- Engagement Standards;
- Statements;
- Guidance Notes;
- Standards on Internal Audit;
- Statements on Quality Control;
-
Notifications/Directions/Announcements/Guidelines/Pronouncements/Professional
Standards issued from time to time by the Council or any of its committees.
- Framework for the preparation and presentation of financial statements,
framework of statements and Standard on Auditing, Standard on Assurance
Engagements, Standards on Quality Control and Guidance Notes on related
services issued, from time to time,
by the ICAI and framework for assurance engagements. and
- Various relevant Statutes and/or Regulations which are applicable.
SCOPE OF PEER REVIEW
The Peer Review process shall apply to all the assurance services of a
practice unit. On selection of a practice unit for peer review, its assurance
engagement records pertaining to the Peer Review period shall be subjected to
review.
The focus during the review exercise will be on :
- Compliance with Technical, Professional and Ethical Standards;
- Quality of Reporting;
- Systems and procedures for carrying out assurance services;
- Training Programmes for staff concerned (including articled and audit
assistants) with assurance functions, including appropriate infrastructure;
- Compliance with directions/guidelines issued by the ICAI including fees
to be charged, number of audits undertaken and maintenance of assurance
related records; and
- Compliance with directions/guidelines issued by the ICAI relating to
article/audit assistants, including attendance register, work diaries,
stipend payments and such other related records.
MEMBERS/FIRMS (PRACTICE UNIT) SUBJECT TO REVIEW
Every Practice Unit based on the category in which they fall are to be
subjected to Peer Review. The Practice Units are categorised into Level I, II
and III.
Any Practice Unit not selected for Peer Review may suo motu apply to
the Board for the conduct of its Peer Review.
OBLIGATIONS OF THE PRACTICE UNIT
Any Practice Unit, in addition to the prescribed information to be furnished
including the questionnaire, statements and such other particulars as the Board
may deem fit shall provide access to any record or document required by the
reviewer, which the reviewer reasonably believes to be of relevance to the peer
review conducted.
PERIODICITY OF PEER REVIEW
The periodicity of Peer Review will be:
- Once in 3 years for Level I Practice Units;
- Once in 4 years for Level II Practice Units; and
- Once in 5 years for Level III Practice Units.
REPORT OF THE REVIEWER
The reviewer before making his report to the Peer Review Board,
communicate a preliminary report to the practice unit. The reviewer
shall report the areas where systems and procedures were deficient or
where non-compliance with reference to any other matter has been noticed
by him. The practice unit shall make its submissions or written
representations, in writing to the reviewer within 15 days of its
receiving the preliminary report .
The reviewer on receiving satisfactory reply from the practice unit
shall submit an appropriate report to the Board. In case the reviewer is
not satisfied with the reply of the practice unit, the reviewer shall
accordingly submit a Modified Report to the Board, incorporating his
reasons for the same.
On receiving a report from a reviewer, the Board, having regard to
the Report and any submissions or representations attached to it, may
make recommendations to the practice unit concerned regarding the
application of Technical, Professional and Ethical Standards, regarding
further improvements that could be made to internal quality systems.
A further "follow on" review after a period of 1 year from the date
of issue of a modified report shall be ordered by the Board. The areas
for improvement recommended with specific instructions will be carried
out and implementation of the recommendations will be examined during
the follow on review.
The reviewer will prepare a final report to the Board (The Reviewer's
Report), incorporating the findings as discussed with the practice unit.
The Board shall consider the report within a period of three months
and if satisfied, will issue Peer Review Certificate. If not satisfied,
it may issue recommendations to practice unit and direct the practice
unit for follow on review after the period of 12 months to be conducted
by a fresh reviewer appointed by the Board.
For Peer Reviews initiated on or ordered after April 1, 2014, if the Board is
of the opinion that there are material deficiencies reported, then the Board
shall refer the matter to the council for considering whether the same may be
referred to the Disciplinary Directorate for initiating disciplinary action
(Clause 8.5 of Peer Review Manual).
ICAI New Scheme of Education & Training 2018
The nomenclature for CA CPT has been changed to CA Foundation as per the new
syllabus. ICAI will give some fixed number of attempts to complete CA CPT in old
syllabus for old registration students. New syllabus will be applicable from May
2018. There are 4 papers in CA Foundation course from May 2018. ICAI introduced
Business Economics and Business and Commercial Knowledge subject in CPT new
syllabus.
The nomenclature for CA IPCC has been changed to CA Intermediate as per the
new syllabus. There are 8 papers in CA Intermediate new scheme from 2016. ICAI
introduced Financial Management & Economics for Finance subject in new syllabus.
There are 8 papers in CA Final new syllabus from 2016 as compared to 7
subjects in the old syllabus. ICAI introduced Elective Paper (100 Marks) in new
syllabus. There are 6 options one has to choose from the list of Elective Papers
– Risk Management; International Taxation; Economic Laws; Financial Services &
Capital Markets; Global Financial Reporting Standards; Multidisciplinary Case
Study
Further ICAI also introduced changes in Paper 7: Part I is Direct Tax Laws
for 70 Marks & Part II is International Taxation for 30 Marks.
It is hereby clarified that the last exam under the Old Scheme for different
levels will be held as follows:
Common Proficiency Test June, 2019
Intermediate (IPC)-Old Scheme May, 2019
Final (Old) Scheme November, 2020
(Refer ICAI ANNOUNCEMENT dated 18th January, 2018 of Transition Scheme for
students of Common Proficiency Course, Intermediate (IPC) Course and Final (old)
Course along with the Conversion Fees for Switching Over to Revised Scheme)
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