Here is an imaginary dialogue between a confused CA—Arjuna and Lord Krishna—which makes for an interesting reading, more particularly in these days, when questions are raised on the integrity of the members of the once an extremely honourable accountancy profession

The editors of The Bombay Chartered Accountant Journal ought to be complimented for publishing a very timely spoof “Ethics and U” in the April 2013 issue. This is an imaginary Q&A dialogue between a confused CA—Arjuna and Lord Krishna— a brilliant attempt at demystifying what really constitutes “bringing disrepute to the profession” as enunciated in the provisions of Clauses 1 and 2 of Part IV of the First Schedule and Part III of the Second Schedule to the Chartered Accountants Act, 1949.
 

The dialogue makes for an interesting reading, more particularly in these days, when questions are raised on the integrity of the members of the once an extremely honourable accountancy profession.
 

The auditing and accounting profession is under the scanner for misdemenours and transgressions abroad in the audits of BCCI, Tyson, Palmart and Enron also here in India—the Global Trust Bank and Satyam, considered the biggest financial frauds to date. Recently there have been reports of negligence in Wipro, SBI, Sesa Goa, Reliance InfoTech and Reebook.
 

Quote and Unquote, suitably modified, appropriate questions and answers:
 

• • Question: A few of my CA friends are doing only this ‘entry’ business. They are minting money and I have to slog like this
   
• • Answer: I had already told you—you have a right, only the performance of your duty; not in the fruits. Those unscrupulous CAs are getting fruits of their deeds!
   
• • Q: I agree. But the harassment of the tax office is unbearable. Their demands are astronomical.
   
• • A: are you also involved in settling the cases?
   

What to do? There is no alternative. I don’t do it myself. That is why my cases remain pending.
 

• • Q: But the profession has generated into business.
   
• • A: Let the profession degenerate; but not a professional like you. Your thoughts are confused; but fortunately, your upbringing has held you from acting in that manner.
•  
• • Q: Where in ‘Misconduct’ is it stated?
   
• • A: See, bribery is a crime. If you are a party to it, it is abetment—that again is a crime.
   
• • Q. But that is only if one is caught! It is a secret deal between the client and the officer. The CA is just a middleman.
   
• • A. Remember, apart from the specific items of misconduct in the Schedules, Section22 of the CA Act covers “other misconduct” also. It is very wide. If you are involved as a middleman, both the officer as well as your client discounts your value. They are happy because they are benefited; but your image is tarnished. 
            
• • Q: You mean, it is not only professional misconduct.
   
• • A: No. So if you are caught, you are directly covered by clause (1) of Part IV and also Part III... That means conviction of a punishable crime. Clause (2) of Part IV is very wide—if your action brings disrepute to the profession that also is misconduct.
   
• • Q: Clients treat us as agents only.
   
• • A: You should be careful as to how the society perceives your profession. In many scandals the role of your colleagues is exposed.
   

There are cases of even CAs demanding dowries.

Does the public really respect you? Three CAs formed a company for some business, it did not pick up, and so they neglected compliances totally. The company was transferred to someone… the buyer filed a complaint. Such negligence brings disrespect to the profession. They were held guilty, though left on reprimand.
 

• • Q: Oh! Then it will cover traffic rules also.
   
• • A: Yes. Even the indiscipline in behaviour, indecency and so many things! There are complaints of ill treatment of articles, misbehaviour with lady staff and what not!  Any professional is expected to have exemplary behaviour—punctuality, courtesy, proper communication and personal habits.
   
• • Q: I have seen professionals with irritating personal habits and mannerisms—they can’t even speak properly; even in conferences they rush for lunch—acts not befitting a professional.
   
• • A: Good! You have understood it. Take care of public image, you will command respect. Council is concerned with that.
   

Many thanks to the author CA Mr Vaze, chairman and the Journal Committee of BCAJ for this enlightening dialogue.
 

(Nagesh Kini is a Mumbai-based chartered accountant turned activist).