M/s. CDR & Associates is one of the three firms shortlisted by JDB Cooperative Bank for assignment of Statutory Audit for the F.Y 2024-25. The…

As per Clause (6) of Part I of First Schedule to the Chartered Accountants Act, 1949, a Chartered Accountant in practice will be deemed to be guilty of professional misconduct if he solicits clients or professional work either directly or indirectly by circular, advertisement, personal communication or interview or by any other means. Provided that nothing herein contained shall be construed as preventing or prohibiting - Any Chartered Accountant from applying or requesting for or inviting or securing professional work from another chartered accountant in practice; orA member from responding to tenders or enquiries issued by various users of professional services or organisations from time to time and securing professional work as a consequence. However, as per the guideline issued by the Council of the Institute of Chartered Accountants of India, a member of the Institute in practice shall not respond to any tender issued by an organisation or user of professional services in areas of services which are exclusively reserved for chartered accountants, such as audit and attestation services. However, such restriction shall not be applicable where minimum fee of the assignment is prescribed in the tender document itself or where the areas are open to other professionals along with the Chartered Accountants. In the given case, JDB Cooperative Bank circulated a list of branches to audit firms, specifying the maximum fee per branch. In response, CDR & Associates submitted their quotation. As per Clause (6) of Part I of the First Schedule to the Chartered Accountants Act, 1949, and the Guidelines issued by the Council of ICAI, such a response is not permitted, since the assignment relates to audit services exclusively reserved for Chartered Accountants, and only a maximum fee (not minimum) was prescribed. Accordingly, the concerned responsible partner of CDR & Associates, being a Chartered Accountant in practice, shall be held guilty of professional misconduct for responding to such a quotation.