Sir in Param CNO 754 last line of Question says gave clean report without examining Accounts , Sir then Clause 2 part 1 of second schedule should get attracted!! since certificate without examination. But its not mention in ans .
In ans clause 7 of part 1 of seoond schedule & part iv of first schedule mentioned
There s material misstatement in financial statement and auditor was aware about it — clause 6 is most relevant but icai referred clause 7 regarding negligence, so mention 7 and then refer clause 6 also , such advisory bring disrepute to icai hence clause 2 of other misconduct
clause 2 of part 1 second schedule is rarely applicable to any case