Code of Conduct

Chartered Accountants in Practice
Members of the Institute in Service:
(i) Management Consultancy
(ii) Mechanised Accounting or Computer Services
Chartered Accountants in Practice
(Schedule C, Part – I)

A Chartered Accountant in practice shall be guilty of professional misconduct if he-
places his professional service at the disposal of or enters into partnership with an unqualified person or persons in a position to obtain business of he nature in which chartered accountants engage by means which are not open to a chartered accountant:
Provided that this paragraph shall not be construed as prohibiting a member from practicing in a country outside Bangladesh in association with a person who is entitled under the law in force in that country to perform functions similar to those which a chartered accountant in practice is entitled to perform in Bangladesh;
allows any person to practice in his name as a chartered accountant unless such person is also a chartered accountant and is in partnership with or employed by him;
pays or allows or agrees to pay or allow, directly or indirectly, any share, commission or brokerage in the fees or profits of his professional business, to any other person than a member of the Institute or a partner or a retired partner or the legal representative or widow of a deceased partner;
accepts or agrees to accept any part of the profits of the professional work of a lawyer, income-tax practitioner, auctioneer, broker or other agent or any other person who is not a member of the Institute;
accepts a position as auditor previously held by another chartered accountant without first communicating with him in writing;
accepts an appointment as auditor of a company without first ascertaining from it whether the requirements of section 144(6) of the Companies Act, 1913 (VII of 1913), in respect of such appointment, have been duly complied with;
accepts a position as auditor previously held by some other chartered accountant in such conditions as to constitute under cutting;
publishes or sanctions the publication of expressions of thanks or appreciation by clients or promotes in any way laudatory notices with regard to professional matters;
solicits clients or professional work either directly or indirectly by circular, advertisement, personal communication or interview or by any other means;
advertises his professional attainments or services or uses any designation or expressions other than chartered accountants on professional documents, visiting cards, letter-heads or sign boards unless it be a degree of a University established by law in Bangladesh or recognized by the Government of Bangladesh or a title indicating membership of the Institute of Chartered Accountants or any other Institution that has been recognized by the Council;
allows his name to be inserted in any directory, either in the main section or in classified list whether printed or not so as to appear in a leaded type or in any manner, which could be regarded as of an advertising character;
certifies any documents, exhibits, statements, schedules or other forms of accountancy work which have not been verified entirely under the personal supervision of himself, a member of his staff, another member of the Institute or his partner;

Provided that the above will not apply in cases of accounts of foreign branches or subsidiaries of his clients which have been duly certified by a public accountant;
gives estimates of future profits for publication in a prospectus or otherwise, or certifies for publication statements of average profits over a period of two or more years without at the same time stating the profits or losses for each year separately;
charges or offers to charge, accepts or offers to accept in respect of any professional employment, fees which are based on a percentage of profits or which are contingent upon the findings or result of such employment except in cases which are permitted under any regulations of Government or requirements of law;
engages in any business or occupation other than the profession of chartered accountants unless permitted by the Council so to engage;
Provided that nothing contained herein shall disentitle a chartered accountant from being a director of a company or a cooperative society unless he or any of his partners is interested in such company as an auditor;
allows a person not being a member of the Institute or a member not being his partner to sign on his behalf or on behalf of his firm, any balance sheet, profit and loss account, report or financial statements or any other document required by his client;
discloses information acquired in the course of his professional engagement to any person other than his client, without the consent of his client or otherwise than as required by any law for the time being in force;
expresses his opinion on financial statements of any business or any enterprise in which he his firm or a partner of his firm has a substantial interest, unless he discloses the interest also in his report;
fails to disclose a material fact known to him which is not disclosed in a financial statement, but disclosure of which is necessary to make the financial statement not misleading;

fails to report a material misstatement known to him to appear in a financial statement with which he is concerned in a professional capacity;


is grossly negligent in the conduct of his professional duties;


fails to obtain sufficient information to warrant the expression of an opinion or his qualifications are sufficiently material to negate the expression of an opinion;


fails to keep moneys of his client in a separate banking account or to use such moneys for purposes for which they are intended;


has been guilty of any act or default discreditable to a chartered accountant or a member of he Insatiate;

(i) contravenes any of the provisions of the Order or the bye-laws made there under;
(ii)is guilty of such other act or omission as may be specified by the Council in this behalf, by notification in the Gazette of Bangladesh;


not being a fellow styles himself as a fellow;

does not supply the information called for or does not comply with the requirements asked for by the Council or any of its Committees;


fails to invite attention to any material departure from the generally accepted procedure of audit applicable to the circumstances;


includes in any statement return or form to be submitted to the Council any particulars knowing them to be false;
permits his name or the name of his firm to be used in connection with an estimate of earnings contingent upon future transactions in a manner which may lead to the belief that he vouches for the accuracy of the forecast;
without first obtaining the permission of the Council associates himself with or promotes any body of accountancy association or institute of accountancy, etc., in Bangladesh;



Members of the Institute in Service:
(Schedule C, Part – II)

A member of the Institute (other than a member in practice) shall be deemed to be guilty of professional misconduct, if he being an employee of any company, firm or person-
pays or allows or agrees to pay directly or indirectly to any person any share in he emoluments of the employment undertaken by the member;
accepts or agrees to accept any part of fees, profits or gains from a lawyer, a chartered accountant or broker engaged by such company, firm or person or agent or customer of such company, firm or person by way of concession or gratification;
discloses confidential information acquired in the course of his employment except as and when required by law or except as permitted by the employee;

includes in any statement, return or form to be submitted to the Council any particulars knowing them to be false;

not being a fellow styles himself as a fellow;

does not supply the information called for, or does not comply with the requirements asked for, by the Council or any of its Committees;

(i) contravenes any of the provisions of the Order or the Bye-laws made there under;
(ii) is guilty of such other act or omission as may be specified by the Council in this behalf, by notification in the Gazette of Bangladesh.

has been guilty of any act or default discreditable to a chartered accountant or a member of the Institute;

without first obtaining the permission of the Council associates himself with or promotes any body of accountancy, association or institution of accountancy, etc. in Bangladesh;



(i) Management Consultancy
Schedule D

REGULATIONS:

Subject to the prior consent of the Council, a member may act as proprietor, partner or director of a management consultancy firm or an unlimited company.

Provided that a member already engaged in the practice of management consultancy either through a firm or an unlimited company at the date of commencement of the order shall not be required to obtain fresh consent of the Council.



Code of Ethics: A member engaged in management consultancy-
shall not advertise or solicit for work or issue any circular, calendar or publicity material;

shall not issue brochures, except to existing clients or in response to an unsolicited request;
shall not use designatory letters indicating qualifications of the directors an members of the company on letter-heads note papers or professional cards except as provided in paragraph (10) of Part I of Schedule ‘C’
shall not refer to associated firms of management consultants on their letter-heads or professional cards or announcements or vice-versa;

shall not adopt a name or associate himself as a partner or director of a firm or a company whose name is indicative of its activities;

shall not use the designation Chartered Accountant (s) for his management consultancy firm or company;
shall not share profits or remuneration in a manner contrary to paragraphs (3) and (4) of Part I of Schedule ‘C’ except when he associates with non-members as stated in regulation 13 of this Schedule;
shall not accept, nor shall a partner in any firm in which he is a partner accept auditing, taxation or other conventional accountancy work from any client introduced to him for management consultancy services by the client’s own professional accountant;
may write a personal letter or make a direct approach to another member of the profession in practice offering his firm’s or company’s services;
may only use the term "management consultant (s)" where he is connected with an organization in the management consultancy field as proprietor, partner or director. This is intended to exclude such terms as "business consultant", "advisors to Management", "Industrial consultant", etc.
shall abide by the rules of professional conduct of the Institute and shall ensure that the firm or company with which he is associated either as proprietor, partner or director abides by those rules;

shall be responsible from the standpoint of ethics for the conduct of the company and its directors and officers as if the company were a firm in which he is a partner. Further an employee member shall be held responsible for any action of his employer which contravenes the rules of professional conduct of the Institute if he is a party thereto;

may associate with non-members for the rendering of various management consultancy services as long as such non-members observe the bye-laws and code of professional ethics of the Institute;

shall communicate as a matter of professional courtesy with the existing professional accountant or consultant informing him of the special work he has been asked to undertake in the event of an introduction for management consultancy work other than through the existing professional accountant;

shall not do under the guise or through the medium of a company or firm anything which he is not allowed to do as an individual;



(ii) Mechanised Accounting or Computer Services


In addition to the rules of ethics applicable to management consultancy work, the following rules shall apply to mechanized accounting or computer services:
such services shall not be advertised nor shall there be soliciting other than by direct communication with other members of the profession who are in practice;

a member offering such services shall not accept auditing taxation or other commercial accounting work from any client introduced to him by the client’s own professional accountant for the provision of mechanized accounting or computer services;

a member shall communicate as a matter of professional courtesy with the existing accountant notifying him of the special work he has been asked to undertake in the event of an introduction for mechanized accounting or computer services other than through the existing accountant.