Skip to content

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

CA Arvind Menon, a senior partner at Menon & Co, wants to strengthen the firm's ethical culture. Which action below is NOT cited in the ICAI Code of Ethics (13th edition) as an example of what a senior accountant might introduce, implement or oversee?

Linking partner remuneration solely to billed fee volume is not cited. The Code's examples include ethics education and training, performance evaluation and reward criteria promoting an ethical culture, ethics and whistle-blowing policies, and policies preventing noncompliance with laws. Fee-volume-only pay is not an ethics-promoting measure.

  1. AEthics and whistle-blowing policies
  2. BPerformance evaluation and reward criteria that promote an ethical culture
  3. CEthics education and training programs
  4. DLinking partner remuneration solely to the volume of fees billed to each clientCorrect

Explanation

The Code lists ethics education and training programs, firm processes and performance evaluation and reward criteria that promote an ethical culture, ethics and whistle-blowing policies, and policies to prevent noncompliance with laws and regulations. Tying remuneration solely to fee volume is not listed and could undermine an ethical culture rather than promote it.

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