Page 158 - Quick Insights Book 2022

Ann. 14 – Revised Guidelines of Network

New Existing New
Approach Model Approach
A B1 B2

Registered Registered Registered
Not recognised To be recognised To be recognised
Partially regulated Regulated Regulated

S. Criteria Approach A Approach B1 Approach B2
No. Alliance Model Network Model Lead Firm Model
1 Name When four firms viz., A & Co., When four firms viz., A & Co., B When four firms viz., A & Co., B &
B & Co., C & Co., and D & & Co., C & Co., and D & Co., Co., C & Co., and D & Co., come
Co., come together to form an come together to form a Network, together to form a Network, they
Alliance, they may name their they may name their Network as will suffix “& Affiliates” or “Network”
Alliance as “ABCD”. In case “ABCD”. In case they wish to use to one of the firms selected by
they wish to use suffix, they will suffix, they will use the suffix “& constituent firms as Lead firm e.g.
use the suffix “& Alliance” to Affiliates” or “Network” to their if A & Co. is chosen as Lead firm,
their common name to make it common name to make it “ABCD then name of Network will be “A &
“ABCD & Alliance”. & Affiliates” or “ABCD Network”. Co. & Affiliates”
In all professional stationery, the In all professional stationery, the In all professional stationery, the
member-firms can mention that member-firms can mention that member-firms can mention that
they are member-firms of so & they are member-firms of so & they are member-firms of so &
so Alliance. The Alliance can so Network. The Network can so Network. The Network can
also mention in its professional also mention in its professional also mention in its professional
stationery that so & so firms are stationery that so & so firms are stationery that so & so firms are
part of its Alliance. part of its Network. part of its Network.
2 Registration Alliance will be registered with Network will be registered with Network will be registered with
ICAI. ICAI will allot unique ICAI. ICAI will allot unique Network ICAI. ICAI will allot unique
Alliance Registration Number Registration Number (NRN) Network Registration Number
(ARN) (NRN)
3 Practice Firms are free to carry on Firms are bound by internal Firms can have an internal
practice as independent firms, integration agreement, and practice agreement recognising one of the
despite being constituents of as independent firms, subject to firms as the lead firm, depending
Alliance. internal agreement. Network’s upon the specialism and expertise
decision prevails upon other firms. required for each assignment.
Alliance may direct the best The individual firms can carry on
practices to be followed by Firms belonging to one Network practice as independent firms.
individual constituent firms. can’t be allowed to become
Associates of another Network The lead firm and its constituents
Firms belonging to one Alliance or Alliance, so that regulatory can’t be allowed to become
can’t be allowed to become complexities are avoided. Associates of another Network
Associates of another Alliance or Alliance, so that regulatory
or Network, so that regulatory complexities are avoided.
complexities are avoided.

Quick Insights on Professional Opportunities for Chartered Accountants 145