Professional Misconduct As Per Chartered Accountants Act 1949

MCQ SELF CHALLENGE #0088

Professional Misconduct As Per Chartered Accountants Act 1949

Dear Professional Seniors & Friends,

Warm Greetings!

The leading tax consultant in Gurgaon welcomes once again to another exciting blog post where participants can take self-assessment on concept-based practical professionals' knowledge of professional misconduct as defined by the Chartered Accountants Act of 1949. The detailed answer of these MCQs shall be posted next day for the self assessment of the participants

MCQ 88.1: Mr. X. A chartered Accountant in practice accepts an Audit in respect of Partnership Firm, on condition that the partnership firm shares 5% of the profits of the firm for that year. On the basis on above which of the following is correct?

A. Mr. A can accept the professional work and his fees can be on the based on profits of firm

8. Mr. A is guilty of professional misconduct and cannot place such condition,

C. Mr. A can accept a maximum of 54

D. None of the Above

MCQ 88.2: If in the above case Mr. X acts as a registered value for the purposes of Direct Taxes & Duties and charges Tees on basis of percentage of value of property valued. Which of the following is correct?

A. Mr. A can accept the professional work and his fees can be on the based on percentage of property valued.

B. Mr. A is guilty of professional misconduct and cannot place such condition.

C. Mr. A can accept a maximum of 5% of property valued.

D. None of the Above

Answer MCQ Self Challenge #0088

This post of MCQ is on provisions relating to professional misconduct in relation to members generally.

Answer MCQ 88.1:8

B) Mr. A is guilty of professional misconduct and cannot place such condition

Answer MCQ 88.2:

A) Mr. A can accept the professional work and his fees can be on the based on percentage of property valued.

Practical Analysis for MCQ 88.1 & 88.2:

Regulation No 92 of Clause (1) of First Schedule of Part-II to Chartered Accountants Act 1949-Professional misconduct in relation to the members of the Institute Generally

• No chartered Accountant in practice shall charge or offer to charge, accept or offer to accept, in respect of any professional work, fees which are based on percentage of profits, or which are contingent upon findings or results of such work provided that In the case of Receiver or a liquidator, the fees may be based upon the percentage of the realization or Disbursement of Assets.
• In case of Auditor of Cooperative Society, the fees may be based on the basis of percentage of paid up capital or the working capital or cross or net income of Profits • In the case of Value for the purposes of Direct Taxes & Duties, the fees may be based on the percentage of property valued

Based on the above analysis, Correct answer to MCQ 88. 1: B) A Ltd is not related to C td and MR X is related party to A Ltd and d and correct answer to MCQ 882: A) A can accept the professional work and his fees can be on the based on percentage of property valued.

(Disclaimer: The objective of the MCQ post is just to discuss the concept, it may happen, by change of facts, the answer may be different. Please do not treat this as professional opinion: you can definitely have your own opinion)

Sincere Regards

CA Sanjay Kumar Agrawal

Mobile 9810116321