This is about the ethical requirements which every CA has to follow to maintain the professional competence.

1. PROFESSIONAL ETHICS By Lakshya Gupta

2. SECTION 22 – TYPES OF
MISCONDUCT
(“22” WHICH MAKES EVERY CHARTERED
ACCOUNTANT TO TAKE A DEEP SIGH, WHEN
HEARD OF)For the purposes of this Act, the expression “PM or OM” shall be deemed to
include any act or omission provided in any of the Schedules, but nothing in
this section shall be construed to limit or abridge in any way the power
conferred or duty cast on the Director (Discipline) under sub-section (1) of
section 21 to inquire into the conduct of any member of the Institute under
any other circumstances.]
Every Chartered Accountant whether in practice or in industry are bound by
the siblings “The First Schedule” & “The Second Schedule”, children of the
Chartered Accountant, 1949
And then there are other relatives like –
 Chartered Accountant Regulations, 1988
 Central Council Guidelines, 2008
 Pronouncements by various Courts of Law

3. STRUCTURE OF SIBLINGS
The First
Schedule
Part I
CAIP - PM
Part II
CAIS - PM
Part III
CAIG - PM
Part IV
CAIG - OM
The Second
Schedule
Part I
CAIP - PM
Part II
CAIG - PM
Part III
CAIG - OM

4. Clause 1 PIN
Clause 2 SCB
Clause 3 4Ps
Clause 4 PP
Clause 5 BSEP MNO

5. CLAUSE - 1 OF PART-I OF THE FIRST
SCHEDULE
CAIP shall be deemed to be guilty of PM if –
“he allows any person to Practice In his Name as CA, except if such
person is a CA in practice and is in Partnership with or Employed by
him”
PIN

6. CLAUSE - 2 OF PART-I OF THE FIRST
SCHEDULE
CAIP shall be deemed to be guilty of PM if –
“he pays or allows or agrees to pay,
-directly or indirectly,
-any Share, Commission or Brokerage
-in the fees or profits of professional business”
S C B :
Outflow
6 Exceptions though –
- CA
- Partner
- Retired Partner
- LR of Deceased Partner
- Member of other PB
- Qualified Persons

7. CLAUSE - 3 OF PART-I OF THE FIRST
SCHEDULE
CAIP shall be deemed to be guilty of PM if –
“he accepts or agrees to accept
- any Part
- of Profits of Professional work
- of Person who is not member of ICAI.
4 Ps :
Inflow
2 Exceptions though, whereby CA
can receive S C B in fees from –
- Member of other PB
- Qualified Persons

8. CLAUSE - 4 OF PART-I OF THE FIRST
SCHEDULE
CAIP shall be deemed to be guilty of PM if –
“he enters into partnership,
- in or outside India
- with any person”
2 Exceptions though –
- CAIP
- Member of other PB having
prescribed qualifications

9. CLAUSE - 5 OF PART-I OF THE FIRST
SCHEDULE
CAIP shall be deemed to be guilty of PM if –
“he secures professional Business
- through Service of Person
- Not being his Employee or Partner
- or by Means Not Open to CAIP”
This clause not to override Clauses 2, 3, 4.
B S E P
M N O