Contents

• Code of Ethics-Some Provisions

• Commonly Used Forms

• Continuing Professional Education-CPE

• Provisions

• Recommended Scale of Fees by ICAI

• Self Regularity Measures

• Student Fees Payable

Provisions

Statute

The Chartered Accountants Act, 1949 w.e.f. 1st July, 1949.– as amended by The Chartered Accountants (Amendment) Act, 2006 w.e.f. 8th August, 2006 (some provisions coming into effect later as per respective dates notified) .

The Chartered Accountants Regulations, 1988 w.e.f. 1st June, 1988.

Membership Eligibility (Ss. 4 & 8 and Regn. 4)

The applicant

• Has completed prescribed period of practical training.
• Has passed the Final Examination.
• Has attained twenty-one years of age.
• Has completed the course on General Management & Communication Skills (GMCS)
• Application in Form 2, payment of prescribed membership fee and entrance fee.

Eligibility to join the C. A. Course & Examinations
(Regn. 45)

• Eligibility for Common Proficiency Test (CPT) (Regn. 25C & 25D) – May enroll for the course if he has passed Class 10 examination. He 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.
• Eligibility for Registration as Articled /Audit Assistant: Under the new scheme, a person is eligible for registration as articled /audit assistant if 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 Competence Course

• Requirements for IPCC Regn.: Pass in12th 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).

For more details, please visit to our website www.icai.org (important accouncement BOS/Announcement/227/12(1) dated 16th August, 2012.

Final (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
• The student 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)
• The students should have completed his articleship as on the first day of the month in which the examination is held (applicable to the students who commence articles after CPT, for a period of three and half years)
• The student 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 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 assistant) given below :

In addition to the above full-time salaried employees who have continued as employee with the same employer for at least 12 months as on the date of registering as articled assistant shall also be entitled to give practical training as under –

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 Form 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.
1st June, 2006)

• . 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)

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: —
1. . Medical grounds requiring discontinuance of articles for a minimum period of three months (on production of a Medical Certificate issued by a Government Hospital).
2. Transfer of parent(s) to another city.
3. Misconduct involving moral turpitude.
4. Other justifiable circumstances/reasons: —
1. Grounds already permissible in the Chartered Accountants Regulations, 1988 (on submission of requisite proofof the Act warranting transfer/termination of articleship): —
1. Industrial Training (Regulation 51)
2. Secondment of articles (Regulation 54)
3. Conversion from PCC to IPCC (for termination of articles only. Re-registration of articles to be allowed only after passing Group-I of IPCC)
4. Death of Principal [Regulation 57(1)(c)]
5. Ceasing of practice by the Principal [Regulation 57(1)(a)]
6. Removal of name of the Principal from the Register of Member due to any reason [Regulation 57(l)(b)]
2. Marriage basis (only if there is relocation to another city involving distance of 50 kms).
3. Irregular payment or non payment of stipend with reference to Regulation 67.
4. Articled assistant desires to serve balance period of training outside India.
5. 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 alongwith 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.

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)

Period: Between last 9 to last 12 months during practical training.

1. Only with recognised financial/commercial/industrial undertaking with minimum fixed assets of ` 1 crore or inimum total turnover of ` 10 crores or a minimum paid-up share capital of ` 50 lakhs or in any other institution or organisation approved by the Council.

2. Training under a member of the Institute who has been a member for continuous period of at least three years. Associates can train 1 trainee. Fellows can train 2 trainees.

3. Intimation of intention to principal under whom serving earlier, at least three months in advance.

4. 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. During the period, the articled assistant shall not be permitted to attend colleges/other institutions for graduation or any other course. 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)

1. Cannot be undertaken without prior permission of the Council of the Institute.

2. 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.

3. In case of attending of regular classes, the same should be outside normal office hours

4. Only one course permitted at a time during training period.

5. 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)

1. Cannot engage without permission of Council.

2. 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 organized for 15 days for the CA students should be organized twice during the period of articled training as under:

(i) GMCS-I (15 days) - during 1st year of articled training

(ii) 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 Programme 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

1. 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.

2. 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 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 be 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.

COMMONLY USED FORMS

Stamp Duty

*The Council of the Institute, has increased membership fees see up under various categories with effect from 1st April, 2011 and lowered for senior citizens (60 years and above)

RECOMMENDED SCALE OF FEES FOR WORK DONE BY CHARTERED ACCOUNTANTS
— Revised w.e.f. 1st April, 2011.

Note : Office time spent in travelling is chargeable. In case of outstation work, traveling and out-of-pocket expenses are
also chargeable.

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.

A) Fees payable under the New Scheme of Education & Training

B) Examination

SELF REGULATORY MEASURES

Recommendatory

1. Member in full time practice for not less than 10 years or a partnership firm in which such member is partner not to accept audit work of a Government company or Corporation for a fee of less than ` 3,000 except in case of newly formed Co. up to 2 years from commencement of operations.

2. Branch Audits of a company not to be conducted by its statutory auditors consisting of ten or more members but to be entrusted to local firm of auditors consisting of less than 10 members except where accounting records of branches are maintained at the Head Office of the Co. or
significant operations of company are carried out at its branch office.

3. In case of large companies, senior firm not to object to appointment of a firm with less than 5 members as joint auditors. Practice of appointment of joint auditors to be encouraged.

4. Practising firm of CAs engaged in audit work to have at least one qualified member for every five non-qualified members of staff excluding articled/audit assistant, typists, peons or other office staff.

5. Auditor to disclose in the Company Balance Sheets the payments received by them for other services through media of a different firm or firms in which auditor is either a partner or proprietor.

6. Professional fees for audit and other services received by a firm, its partners individually and by other firm in which a partner or partners are partners, from one or more clients or companies under same management (as defined in S. 370(1B) of the Companies Act) not to exceed 40% of the gross annual fees of firm, other firms and partners referred to above in order to ensure that member is not over-dependent on one group of clients or companies under same management. Not to apply in a case where such fees do not exceed ` 2 lakhs from the group or where fees relate to audit of Govt. companies or where appointments are made by the Govt.

CODE OF ETHICS — SOME PROVISIONS

Advertisement, Logo, etc.

A practicing C.A.

1. CANNOT solicit work.

2. CANNOT give a client’s balance sheet on his letterhead.

3. CAN give his audit report to the client on his letterhead.

4. CANNOT describe on his letterhead or visiting cards association with other Indian/Foreign firms.

5. CANNOT use a firm name not approved by the Institute.

6. CAN use a prescribe logo on visiting cards, letterheads, etc.

7. CANNOT have his name displayed in Yellow pages in bold.

8. CAN describe himself as a C.A. in greeting cards and invitation cards. Can use the prefix CA. before his name.

9. CAN advertise in the official Yellow pages brought out by the telephone authorities.

10. CAN display his firm’s name board in a manner that it does not smack of advertisement.

11. CAN advertise as per the notified guidelines.

Website

The Institute has permitted each member to establish their own websites. Members should ensure that their Websites are run on a ‘pull’ model and not a ‘push’ model of the technology to ensure that any person who wishes to locate the member would only have access to the information and the information should be provided only on the basis of specific ‘pull’ request.

Tenders

The practising CA. —

CANNOT Respond to

• advertisements inviting applications for appointment of auditors;

• tenders or circulars or enquiry (made to more than one member) inviting quotations restricted to CA.

CAN Respond to Advertisement / Circular/Tenders or enquiries

• In other areas when competing with non CAs.

• If the same has been sought by World Bank/I.M.F./A.D.B./Other similar International Body /Govt. Co. or Agency/Autonomous Body sponsored or regulated by the Govt/Nationalised Institution..

Any other similar body which Council may prescribe.

• earnest money/security deposit in areas which are exclusive to C.A. as per law

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 C.As. are recruited in non-exclusive area.

Fees : For accounting periods beginning on or after
1-4-2004

Audits excluded from above restriction

1. Charitable institutions, clubs, prov. funds, etc.*

   * Earlier this exemption applied only if the above audits were honorary. This requirement has now been removed.

3. Newly formed concerns for first two years from date of commencement of operations.

4. Certificate/audit under Income-tax Act or other attestation work carried out by statutory auditor.

5. Applicable for Accounting period beginning on or after 1-4-2004.

   A practising C.A.

   1. CANNOT accept contingency or percentage based fees, except in the following cases:

   • A liquidator can accept his fee based on percentage of realisation of assets

   • 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

   • A valuer for direct tax purposes can accept fees based on the value of property valued.

   2. CAN share fees with other practising C.A. but not with others.

Audit

a) Member in whole-time employment who is a partner in a firm not to be counted for the purpose of statutory audit limit u/s. 224(1B) of the Companies Act.

b) Member in whole-time employment who is not a partner in a firm not to accept statutory audits of companies.

c) The Incoming auditor of a company should, before accepting the audit, ensure himself that the provisions of sections

• 224 (appointment of an auditor)

• 224A (appointment of an auditor needing special resolution)

• 225 (removal of an auditor)

of the Companies Act, 1956 have been duly complied with.

d) The Incoming Auditor should not accept the audit without first communicating in writing with the Previous Auditor.

e) A Chartered Accountant should not accept appointment as an auditor of an entity in case the undisputed audit fee of another Chartered Accountant for carrying the statutory audit has remained unpaid. This does not apply in case of sick units.

f) NOTIFICATION No. 1-CA(7)/60/2002 :

A member of the Institute in practice shall be deemed to be guilty of professional misconduct, if he accepts the appointment as statutory auditor of Public Sector Undertaking(s)/ Government Company(ies)/Listed Company(ies) and other Public Company(ies) having turnover of ` 50 crores or more in a year and accepts any other work(s) or assignment(s) or service(s) in regard to the same Undertaking(s)/Company(ies) on a remuneration which in total exceeds the fee payable for
carrying out the statutory audit of the same Undertaking/Company.

Provided that in case appointing authority(ies)/regulatory body(ies) specify(ies) more stringent condition(s)/restriction(s), the same shall apply instead of the conditions/restrictions specified in this Notification.

1. The above restrictions shall apply in respect of fees for other work(s) or service(s) or assignment(s) payable to the statutory auditors and their associate concern(s) put together;

2. For the above purpose,

(i) the term “other work(s)” or “service(s)” or “assignment(s)” shall include Management Consultancy and all other professional services permitted by the Council pursuant to Section 2(2)(iv) of the Chartered Accountants Act, 1949 but shall not include: –

• audit under any other statute;

• certification work required to be done by the statutory auditors; and

• any representation before an authority;

(ii) the term “associate concern” means any corporate body or partnership firm which renders the Management Consultancy and all other professional services permitted by the Council wherein the proprietor and/or partner(s) of the statutory auditor firm and/or their “relative(s)” is/are Director/s or partner/s and/or jointly or severally hold “substantial interest” in the said corporate body or partnership;

(iii) the terms “relative” and “substantial interest” shall have the same meaning as are assigned under Appendix (10) to the Chartered Accountants Regulations, 1988.

3. In regard to taking up other work(s) or service(s) or assignment(s) of the undertaking/company referred to above, it shall be open to such associate concern or corporate body to render such work(s) or service(s) or assignment(s) so long as aggregate remuneration for such other work(s) or service(s) or assignment(s) payable to the statutory auditor/s together with fees payable to its associate concern(s) or corporate body(ies) do/does not exceed the aggregate of fee payable for carrying out the statutory audit.

4. This notification shall apply for any appointment(s) on or after 1st April, 2002.

Tax Audit under Income-tax Act

a) Firm of C.As not to accept more than 45 tax audits per partner.

b) Member not to accept more than 45 tax audits.

c) Record of Tax Audit Assignments to be maintained. (Refer ICAI Journal May, 2003 page 1127 for the format)

d) Tax Auditor cannot act as an Internal Auditor.

Other activities

A practising C.A.

1. CANNOT carry on any other business except with prior permission of the Council.

2. CAN be involved in business through HUF so long as he is not Karta of HUF.

3. CANNOT act as portfolio manager for his client.

4. CAN 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.

5. CAN be the author of any books or articles and act as Editor of professional journals.

6. CAN hold office in an honorary capacity in a charitable, educational or other non-commercial organisation.

Disclosure

A practising C.A.

1. CANNOT disclose confidential information relating to client to a third party without client’s permission or unless he is required to do so under law.

2. SHOULD 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.

RULES OF NETWORK AND MERGER–DEMERGER

Rules of Network and Merger–Demerger amongst the firms registered with the ICAI (Refer February 2005 ICAIJ p. 1075)

CODE OF CONDUCT FOR CA STUDENTS

A separate Code of Conduct for “CA students” has been published in the ICAI Journal Jan., 2003 Page No. 742.

CPE REQUIREMENTS

Members holding Certificate of Practice (except those who are residing abroad or exempted), are required to Complete at least 90 CPE credit hours in each rolling three-year period of which 60 CPE credit hours should be of structured learning. But should Complete minimum 20 CPE credit hours of structured learning in each year.

All the members who are not holding Certificate of Practice or are residing abroad (whether holding Certificate of Practice or not), unless exempted, are required to Complete at least 45 CPE credit hours of structured/unstructured learning in each rolling three-year period Complete minimum 10 CPE credit hours of structured/unstructured learning in each year.

Unstructured CPE Learning can be Web-based learning modules
(e-learning), Self-learning modules, Reading and individual home study Group or bilateral discussion on technical issues Acting as visiting faculty or guest faculty Participation in CPE Teleconferencing Programmes Internal Training Programmes being organised by firms of Chartered Accountants having seven or more partners etc.

The members are required to submit a Self-declaration in the prescribed form once in a year before 31st May, to avail the CPE Hours Credit for the ULAs undergone by them in the previous year.

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.

PERSONs at WIRC (Anveshak)

dealing with various matters

Regional Head, Western Region Office
Overall Administrative Incharge Mr. Y. S. Rawat

Members’ Section Ms. Renu Verma

Students Section Ms. Surekha Bagwe

Firms Ms. Neha Wagh

Board of Studies Mr. Ravindra Raja

Regional Council Activities Mr. Koshy John

ICAI Computer Centre (Mumbai) Ms. S. Kapoor

Members & Students Mr. H. M. Jorapur

Tel.: 3989 3989
Email: wro@icai.org

SALE OF PUBLICATIONS

10 a.m. to 4.30 p.m. (Monday-Friday)
Lunch Break 1.00 p.m. – 1.30 p.m.

EXTN COUNTERS

For Sale of Prospectus, Forms, Certain Publications,
Suggested Answers, Revision Test Papers.

Rajasthan Vidhyarthi Griha (RVG),
Lallubhai Sewal Das Marg,
Off S.V. Road, Andheri (W), Mumbai- 400 058 • Tel.:5571 5697

Maheshwari Mandal Hostel, Devidayal Road,
Near BMC Office, Mulund (W), Mumbai – 400 080

10 a.m. to 4.30 p.m. (Monday-Friday)
Lunch Break 1.00 p.m. – 1.30 p.m.