Professional misconduct by a Chartered Accountant arises when certification is issued without proper verification of records.

A Chartered Accountant who issued a certification without properly verifying the underlying books and records was found to have acted below the minimum professional standard. The professional admitted ignorance of the relevant export policy, could not clearly identify the records examined, gave evasive answers on verification, and failed to explain inconsistencies in the certified figures. The document states that a certification carries an expectation of authenticity and requires reasonable inquiry, accuracy, and professional care before signing. On that basis, such unverified certification amounted to gross negligence and professional misconduct, and was treated as unethical and dishonourable conduct.

---

---

Issues: Whether the respondent Chartered Accountant was guilty of professional misconduct and gross negligence for issuing a certificate without proper verification of the books and records.

Analysis: The respondent admitted that he was unaware of the relevant export policy, could not clearly state what books were shown to him, gave evasive answers on verification, and failed to explain material inconsistencies in the figures certified. The certificate carried the authenticity expected of a professional certification, and a Chartered Accountant was required to test the correctness of the figures before signing. Issuing such a certificate without proper verification fell below the minimum standard expected in the profession and amounted to conduct that was unethical and dishonourable.

Conclusion: The respondent was rightly held guilty of gross negligence and professional misconduct.

Ratio Decidendi: A Chartered Accountant who certifies figures without proper verification of the underlying records commits professional misconduct, since certification carries a duty of reasonable inquiry, accuracy, and professional care.

---