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

CA Deepak Nair, a practising chartered accountant, proposes to release an advertisement about his firm's services. He is unsure whether the form of advertising complies with the Advertisement Guidelines. Which approach is consistent with the ICAI Code of Ethics (13th edition)?

He should ensure the advertisement's contents are true to the best of his knowledge and belief and conform to the Advertisement Guidelines. If he is in doubt, he is encouraged to consult the Ethical Standards Board of ICAI. The Institute owns no responsibility for the contents or claims.

  1. APublish it, since the Institute takes responsibility for the contents of advertisements by members
  2. BEnsure the contents are true to the best of his knowledge and belief and conform to the Advertisement Guidelines, and consult the Ethical Standards Board of ICAI if in doubtCorrect
  3. CPublish it, since conformity with the guidelines is optional if the claims are true
  4. DAvoid consulting anyone, as the Code prohibits seeking guidance on advertising

Explanation

The Code requires that an advertisement's contents be true to the best of the accountant's knowledge and belief and conform to the Advertisement Guidelines. It states that the Institute does not own any responsibility for the contents or claims, and it encourages consultation with the Ethical Standards Board in case of doubt. The other options contradict one or more of these points.

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