Shortcoming in "Chapter 22 on Professional Ethics" contained in Practice Manual [January 2016 Edition]:

Question 7(i):

**Answer given in the Practice Manual:
A member of the Institute of Chartered Accountants of India shall be governed by Code of Ethics whether practicing in India or outside India. Accordingly, there is a professional misconduct

**Correct Answer:
A member of the Institute of Chartered Accountants of India practising outside India is not governed by the provisions of the Chartered Accountants Act, 1949 since the provisions of the said Act are not applicable outside India. Accordingly, the question of professional misconduct would not arise if an Indian chartered accountant practising outside India becomes a partner with aforesaid accountants and enters into partnership in that country with a member of the Institute of that country. There would be no professional misconduct within the provisions of the Institute of Chartered Accountants Act, 1949 as the applicability of such provisions does not extend to outside India.

Students are advised to follow the correct answer mentioned above which was also given in the previous editions of the Practice Manual. In this current edition, the provisions of Section 1, Section 6 and applicability of Part I of First Schedule of the Chartered Accountants Act, 1949 is seemingly overlooked by the concerned draft's person who drafted the answer.

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