Special approval is required if CA in his name can do family business which has been devolved on him however he must not take active part in it. Sir my question is if the business is under the name of CA however its activities are not majorly under his control then suppose if any fraud took place by the business concern wouldn\’t it be negative impression on the profession as for general public that business in name of CA and if any wrong thing will happen allegation would be on a CA only?

Questions › Category: CA-Final Prof Ethics › Special approval is required if CA in his name can do family business which has been devolved on him however he must not take active part in it. Sir my question is if the business is under the name of CA however its activities are not majorly under his control then suppose if any fraud took place by the business concern wouldn\’t it be negative impression on the profession as for general public that business in name of CA and if any wrong thing will happen allegation would be on a CA only?

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Jasmine Kaur asked 7 years ago

Question Tags: Schedule I-part I clause 11

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Ravi Staff answered 7 years ago

objective of clause 11, is to restrict work of practising professionals to CA related work, because they hold COP and they should do justice to it. if they want to do anything else leave COP and then you are free 🙂
now family business is also other work, but still to reduce hardship, they say it can carry-on with business provided you are not actively involved. and that reasonable. now regarding point of fraud etc you can create system and do periodical supervision. fraud can happen in any entity where CA is associated, so things are not developed by ICAI keeping this thing in mind.