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Within the scheme of the Code, which clause of Part II of the Second Schedule of the Chartered Accountants Act, 1949 is invoked when a CA in employment contravenes Council guidelines requiring due diligence?
AClause 5 of Part I of the Second Schedule
BClause 1 of Part II of the Second Schedule
CClause 8 of Part I of the Second Schedule
DClause 6 of Part I of the Second Schedule
Answer & Solution
Correct answer: B. Clause 1 of Part II of the Second Schedule
Clause 1 of Part II of the Second Schedule covers contravention of the Act, regulations or guidelines issued by the Council; the Council's guidelines specifically require that a member in employment shall exercise due diligence and not be grossly negligent.
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