CA. Evan has been in practice for two years and runs his proprietorship firm in the name of “Evan & Co.” He maintains notes in his mobile where…

CA Final · Advanced Auditing, Assurance and Professional Ethics · MTP · May 2024
CA. Evan has been in practice for two years and runs his proprietorship firm in the name of “Evan & Co.” He maintains notes in his mobile where he records the fees received from various clients. Using these records, he prepares and files his income tax return. Comment with respect to the provisions of the Chartered Accountant Act, 1949.

Suggested Answer and Working Notes:

Maintenance of Books of Account by a CA in Practice: Chapter V of the Council General Guidelines, 2008 specifies that a member of the Institute in practice or the firm of Chartered Accountants of which he is a partner, shall maintain and keep in respect of his professional practice, proper books of accounts including the following- (i) a Cash Book (ii) a Ledger Thus, a Chartered Accountant in practice is required to maintain proper books of accounts. In the instant case, CA. Evan does not maintain proper books of accounts and writes the fees received from various clients in notes on his mobile. Notes maintained by him in mobile cannot be treated as books of accounts. Hence, CA. Evan, being a practicing Chartered Accountant will be held guilty of misconduct for violation of Council General Guidelines, 2008.

Topics: Professional Ethics & Liabilities of Auditors

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