M/s M & T, a firm of Chartered Accountants having three partners, has been actively involved in professional development and social welfare…

As per Clause (6) of Part I of the First Schedule to the Chartered Accountants Act, 1949 refers to professional misconduct of a member in practice if he solicits client or professional work either directly or indirectly, by circular, advertisement, or personal communication or interview or by any other means. There are some forms of soliciting work which the council has prohibited, which includes Sponsoring Activities: Member in practice or a Firm of Chartered Accountants is not permitted to sponsor an event. However, such member or Firm may sponsor an event conducted by a Programme Organising Unit (PoU) of the ICAI, provided such event has the prior approval of Continuing Professional Education (CPE) Directorate of the ICAI. Members sponsoring activities relating to Corporate Social Responsibility may mention their individual name with the prefix "CA". However, the mention of Firm name or CA Logo is not permitted. (i) In the given situation, M/s. M&T, a firm of Chartered Accountants, contributed funds to the "Seminar on Emerging Trends in Audit and Assurance" organized by Program Organising Unit of the ICAI without the prior approval from the CPE Directorate. Therefore, M/s M&T shall be held guilty of professional misconduct under Clause (6) of Part I of the First Schedule to the Chartered Accountants Act, 1949 since member or firm may sponsor an event conducted by a Programme Organizing Unit (PoU) of the ICAI with the prior approval of Continuing Professional Education (CPE) Directorate. (ii) In the given situation, CA Gunjan, a partner of firm who personally contributed towards a CSR-related environmental initiative, displayed the name, designation and Firm Logo in the posters and banners at the bottom corner of the banner. Therefore, she will be held guilty of professional misconduct under Clause (6) of Part I of the First Schedule to the Chartered Accountants Act, 1949 as members sponsoring activities relating to CSR may mention their individual name with the prefix "CA" but mention of Firm name or CA Logo is not permitted.