Council General Guidelines, 2008

Chp-2 Chp-5 Chp-11 Chp-14

(In employee, e comes 2x)
Conduct of a Member being an
employee
A member of ICAI who is an
Employee shall Exercise due
diligence & shall not be grossly
negligent in the conduct of his
duties.
Maintenance of books of account (BOA)
A CAip or Partner of CA Firm shall
maintain and keep in respect of his/its
professional practice, proper BOA
including the Cash Book & Ledger.
(Even if sec-44AA of the Income Tax
Act, 1961 applies or not.)
Directions in case of unjustified
removal of auditors
A CAip as an incoming auditor(s) shall
not accept the appointment as auditor
of entity, in case of unjustified removal
of the earlier auditor.
Unique Document Identification Number (UDIN)
Guidelines (18 digit-alpha numeric)
A CAip shall generate Unique Document Identification
Number (UDIN) for all kinds of the
-Certification,
-GST and Tax Audit Reports &
-Other Audit, Assurance & Attestation functions
undertaken/signed by him

Chp-13 Chp-16 Chp-10

Guidelines on Tenders Logo Guidelines Appointment of an auditor when he is indebted to a
concern
Members are encouraged to use logo, which consists of Member in practice or a partner of a firm in practice
TENDERS/ENQUIRIES-open for letter 'CA' with Upside down tick mark (green colour) or a firm or relative of such member or partner shall not
Exclusively for CA (E.g.-Audit Other professionals inside rounded rectangle with white background. accept appointment as auditor of a concern
& Attestation) along with CAs (E.g.- -letter 'CA' (blue/corporate colour-denotes creativity, -while indebted to the concern or
Compiling of records) innovativeness, knowledge, integrity, trust, truth, -given any guarantee or
MINIMUM FEES PRESCRIBED stability and depth.) -provided any security
in Tender document? -Upside down tick mark (green colour)-Tick denotes in connection with the indebtedness of any 3rd person to
YES NO wisdom & value of the professional, while Green colour the concern for limits fixed in the statute & in other cases
CAN CANNOT CAN RESPOND signifies growth, prosperity, harmony & freshness. for amount exceeding Rs. 1,00,000/-
RESPOND RESPOND -Rounded rectangle with white background. Note: Fees received in advance=Indebted
Note: Fees received on progressive basis-Not an Issue.

Chp-6 (remove 0 from 60)
Tax Audit assignments under Sec-44 AB of the Income-tax Act, 1961
1.Ceiling limit for signing the Tax Audit Reports:
(shall not accept Tax Audit assignment more than limit as specified below in a FY
,Whether in respect of corporate or non-corporate assesses)
a) In case of a CAip or proprietary firm of CA- 60 tax audit assignments
b) In case of Firm of CAip- 60 tax audit assignments per partner in the firm
2.Audit of branch office & head office = single assignment.
3.Audit of One or more branches of a single concern by 1 CAip = single assignment.
4.Part time CAip shall not be allowed to conduct TAX Audit.
5.Clarification by Committee on Ethical Standard Board :The limit on number of tax audit
assignments per partner in a CA Firm may be distributed between the partners in any
Chp-7 (apne ICAI ke member ka saath-7 do)
Appointment of an Auditor in case of non-payment of undisputed fees
A CAip shall not accept the appointment as auditor of an entity ,where
-undisputed audit fee of another CA
-for carrying out the statutory audit under the Co. Act, 2013 or various other statutes
-has not been paid.
*Exception- In case of sick unit, the above prohibition of acceptance shall not apply.
*Sick Unit Means a unit registered for not less than 5 years & whose net worth is
negative or has at end of FY accumulated losses ≥ its entire net worth.
*Undisputed audit fees=Provision for audit fee in accounts signed by both - the auditee &
the auditor + other expenses, if any, incurred by the auditor in connection with the audit.

manner whatsoever e.g.- 1 partner individually can sign all reports u/s 44AB (provided
total number of tax audit reports on behalf of firm do not exceeds specified limit)
A. Characteristics of Network
(Network hone ke liye kya
chahiye)
1.Co-operation
2.Sharing of -Cost & Profit /
Professional resources
(Professional resources
includes Partners, staffs,
technical depts., Audit
methodology, Training
courses)
3.Common-
Ownership/Quality/QC
policies & Procedures/Brand
name
Council General Guidelines, 2008
Chp-15
Guidelines for Networking
B. What is NOT a C. Different forms of Network- D. Approval of Name of E. Registration of G. Change (entry/exit)
Network? Network amongst firms Network (is in constitution of
registered with Institute mandatory) with ICAI registered Network
1.Sharing of cost, A network can be constituted as # Procedure to obtain distinct After name of network Communicate in Form-C
which is 1.Mutual Entity (E.g.-AB & name of network: is approved > Network to ICAI within 30 days
- Immaterial or Affiliates) Select Name > Inform ICAI in shall apply in Form-B to from date of change in
- Limited to 2.Partnership firm (Maximum Form-A > ICAI to respond register itself with ICAI constitution.
professional 20 no. of partners allowed) (accept/reject) within 30 days. within 3months
resources 3.LLP (E.g.- AB Affiliates LLP) , Otherwise name
4.Company (MCS)- (E.g.- AB Note-1 To distinguish a assigned shall stands
2.Association Affiliates Pvt Ltd/Ltd) network from a firm of cancelled on expiry of
between firm & 5.Sole proprietor Chartered accountants 3m
unrelated entity. Note-1 A firm is allowed to join - the words “& Affiliates” shall
only one network. be used after name of network
Note-2 Firm having common - the words “& Co.” or “&
partners shall join only one Associates” shall NOT be used.
network

Chp-17
Guidelines for Corporate Form of Practice
CAip are Various Conditions to comply with
1.Name Approval-Name of the Management Consultancy Co. is required to be
1.Allowed to- Render MCS & other services in corporate form (can retain Full time COP) approved by the Institute.
2.Registration-Such Co. has to be registered with the Institute.
2.Allowed to-hold the office of MD, WTD or Manager of a body corporate engaged 3.Ethical Compliance-
exclusively in rendering MCS and Other Services permitted by the Council in pursuant a)If the individual practitioner/sole-proprietorship firm/partnership firm is the statutory
to Section 2(2)(iv) of the Chartered Accountants Act, 1949 (can retain Full time COP) auditor of an entity then the Management Consultancy Co. should not accept the
(1&2 allowed Along with attest function either in individual capacity or in internal audit or book-keeping or such other professional assignments (e.g-sec-144),
Proprietorship/Partnership firm & also entitled to train articled/audit assistants). which are prohibited for the statutory auditor firm.
b)Fees of MCS shall not exceed Audit fees
3.Not Allowed-to do Audit Practice in corporate form c)Such co. shall comply (by giving an undertaking) with clauses (6) & (7) of Part -I of the
First Schedule to the CA Act, 1949 & such other directives issued by ICAI .
 Council General Guidelines, 2008
Chp-8 Chp-9
Specified number of audit assignments Appointment as Statutory auditor
As per Sec-141 Co. Act’2013 – However, As per Council Guidelines- Member in practice shall not accept the appointment as statutory auditor of -
A CA shall accept audit of Maximum 20 A CAiP can accept audit of Maximum 30 PSU(s)
companies excluding, companies including Private Co. & Small -Govt. Companies
-Pvt Ltd. Co. having PUC < 100Cr (Provided no Co. except, -Listed Companies &
default in filing Annual return & FS) & -OPC & Dormant Co. -Other Public Companies
-OPC, Small Co., Dormant Co. having turnover of Rs. 50 crores or more in a year &
Note-1: A CAiP or Firm of CAiP shall maintain a record of audit assignments accepted in where he accepts any “other work/ Assignment/ Service incl Mgt. Consultancy & all
following format: other professional services as per sec 2(2)(iv) of CA Act,1949” in regard to Same
Sr.No Name of Co. Registration No. Date of Appointment Date of Acceptance Undertaking/ Companies on remuneration which in total exceeds Fee payable for
1 2 3 4 5 carrying out the statutory audit of the same Undertaking/company.
(E.g. Rohit, auditor of Z ltd having 200Cr T/O. The audit fee fixed for year at Rs.50
Note-2: A CAiP shall comply with both CGG & Sec-141. lakhs. During the year co. offers Rohit an assignment of Mgt. consultancy for
Note-3: Audit of HO & Branch office of a co. by 1 CA or Firm = 1 Audit Assignment remuneration of 1 Cr.
Since- Mgt Consultancy ka fees > Stat audit ka fees, Rohit shall not accept mgt
consultancy assignment otherwise it would be misconduct.)

IMP Note-1 Manner of answering- As per Chapter …. of CCG 2008, on …..., it is specified that if

IMP Note-2 A member of Institute will be held guilty of professional misconduct under Schedule-II of Part-2 of clause-1, if he Contravenes any of the provisions of this Act or the
regulations made there under or Any guidelines (CCG) issued by the Council.

DISCIPLINARY MECHANISM
st
Directorate Discipline (DD) receives complaint 1 & on investigation if it founds that Member is Guilty under either Directorate Discipline (DD) receives complaint 1st & on
cases investigation if it founds that Member is Not Guilty
Schedule-I Schedule-II/Both 1.Transfer case to BOD
Case will be forwarded to Board of Discipline (BOD) Disciplinary Committee (DC) 2. If BOD finds it to be Not Guilty- Close
Powers, if Found Guilty -Reprimand the Member I.e. Warning -Reprimand the Member I.e. Warning 3. If BOD finds it to be Guilty-
-Fine Upto 1 lakh -Fine Upto 5 lakh -If relates to Schedule-I: BOD will investigate further
-Cancellation of M/COP- upto 3 months -Cancellation of M/COP- Permanently or -If relates to Schedule-II: DC will investigate further
Specified period
If DD/Member is not Satisfied by decision
-Appeal to Appellate Authority(AA) < 90days + 90days Extension
AA shall investigate & may pass following order
- Cancel/Modify/Confirm the Order
- Cancel/Increase/Decrease Penalty
- Send the case back to BOD/DC for further Investigation
-Any other suitable order
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