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- 1.Why does ICAI treat this as a serious issue?
- 2.The rule behind this: Regulation 190A and professional misconduct
- 3.But I was not doing public practice work - Does that matter?
- 4.Why does this news matter for CA members and CA students?
- 5.What should a CA do if they want to work as a full-time CFO?
- 6.Practical compliance checklist for members
- 7.Could ICAI remove your name from membership?
- 8.The bigger message: professional ethics is not optional
The Institute of Chartered Accountants of India (ICAI) recently took strict disciplinary action against a Chartered Accountant who was found working as a full-time Chief Financial Officer (CFO) while also holding a full-time Certificate of Practice (CoP). In its disciplinary order, ICAI removed the CA’s name from the Register of Members for a period of one month, highlighting that such dual engagement is not acceptable under the professional framework. This development has become an important topic in the CA community because it reinforces a clear message: a CA in full-time practice cannot simultaneously continue full-time employment unless specific permissions and compliance are met.
Why does ICAI treat this as a serious issue?
The auditing and accountancy profession is built on independence, integrity, and accountability. A CA in practice is expected to act independently and remain free from employment-based influence that may create a conflict of interest.
When someone holds a full-time CFO position, they are not simply taking up “extra work.” They are responsible for financial decision-making, reporting, compliance, and internal financial control for an organization. At the same time, a CA holding CoP is expected to be available for practice-related work and follow the practice restrictions laid down by ICAI.
From ICAI’s point of view, this combination can create:
- Conflict of interest,
- Confusion about professional status,
- Violation of practice regulations,
- A risk to professional credibility.
That is why ICAI regularly deals with such cases through disciplinary actions.
The rule behind this: Regulation 190A and professional misconduct
This case largely revolves around Regulation 190A of the Chartered Accountants Regulations, 1988, and related misconduct provisions under the Chartered Accountants Act, 1949.
The key idea is:
A Chartered Accountant who holds a Certificate of Practice cannot engage in full-time employment unless the Council has given permission (where applicable) or the member has followed the correct conversion/surrender process for the certificate.
In similar disciplinary cases, ICAI has treated this as misconduct under Item (11) of Part I of the First Schedule to the Chartered Accountants Act, 1949, which deals with engaging in an occupation other than accountancy without permission.
In short, if you are in practice, ICAI expects you to remain within the rules of practice.
But I was not doing public practice work - Does that matter?
Many professionals assume that if they do not sign audit reports or do client work, they are safe. But disciplinary decisions have shown that holding a full-time CoP itself can be a violation, even if no income from practice is proven.
In similar Board of Discipline orders, ICAI has clarified that compliance is expected, and violation is treated seriously, irrespective of whether the CA derived monetary benefit from practice during employment. That means the professional status matters—not just the income.
Why does this news matter for CA members and CA students?
This ICAI action is not just about one individual case. It is a reminder to the entire CA fraternity that ICAI is actively monitoring professional compliance. Many members shift between industry and practice, or sometimes attempt to maintain both without formally updating their status.
This update matters because it shows:
- ICAI can take action even if a case comes later through a complaint.
- Employment + CoP is a compliance-sensitive combination.
- Even short-term non-compliance can cause long-term reputation issues.
For CA students, this is also an ethics lesson: CA is not only about exams—it is about professional discipline and conduct.
What should a CA do if they want to work as a full-time CFO?
If a CA wants to take up a full-time CFO role, the safest approach is to remain fully compliant. Depending on the case, a CA may need to:
- Surrender the CoP before joining full-time employment, or
- Convert to the appropriate status (as per ICAI rules), and
- Follow the documentation process.
It is strongly advised that members do not assume that employment is automatically permissible while holding CoP. Always check ICAI guidelines and obtain approvals when required.
For reference, ICAI’s Ethical Standards/Council decisions discuss the permissibility of various roles and occupations for members in practice.
Practical compliance checklist for members
If you are a CA and planning to take up employment while holding CoP, ensure the following:
- Review the nature of employment: is it full-time, contractual, consultancy, or part-time?
- Decide your status: practice or employment.
- Update ICAI records properly through the official process.
- Keep documentation ready, such as appointment letters and joining details.
- Avoid continuing full-time CoP if you are employed full-time.
These basic steps can prevent disciplinary exposure later.
Could ICAI remove your name from membership?
Yes, ICAI has disciplinary powers. Depending on the severity, the Institute can impose penalties such as:
- Reprimand,
- Fine
- Suspension of CoP,
- Removal of name for a defined period.
In this recent CFO-related matter, the penalty was the removal of the name for one month. Even a one-month removal can create professional setbacks, particularly for those in senior roles.
The bigger message: professional ethics is not optional
This case reflects a broader reality. ICAI is increasingly reinforcing the idea that:
- Your professional status must match your professional activity,
- Ethical compliance is as important as technical knowledge,
- Misconduct will not be ignored, even for senior designations.
CFO is a highly responsible role. ICAI’s action shows that seniority in a corporate position does not give exemption from CA regulations—rather, it increases responsibility.
