Skip to content

CA Final · Financial Reporting · Professional and Ethical Duty of a Chartered Accountant

At a family dinner, CA Nisha Verma's brother asks about the upcoming merger of her audit client, Himalaya Foods Ltd. Nisha is careful to say nothing. Which requirement of the ICAI Code of Ethics (13th edition) does her caution best reflect?

Her caution reflects the requirement to be alert to inadvertent disclosure of confidential information, including in social settings and to immediate or close family members. A family dinner question about a client's merger is exactly the situation this requirement covers.

  1. ABeing alert to the possibility of inadvertent disclosure, including in a social environment and to an immediate or close family memberCorrect
  2. BComplying with the Advertisement Guidelines
  3. CEncouraging a whistle-blowing policy in the firm
  4. DObtaining client authorisation to disclose the merger

Explanation

The Code requires an accountant to be alert to inadvertent disclosure, including in a social environment, particularly to a close business associate or an immediate or close family member. The scenario is about a family setting, not advertising, firm culture or authorised disclosure.

Did you get it right without looking?

One question tells you little. A timed set on Professional and Ethical Duty of a Chartered Accountant shows your real accuracy, how long you take and where you lose marks.

Practise Professional and Ethical Duty of a Chartered AccountantFree diagnostic mock

More Professional and Ethical Duty of a Chartered Accountant questions