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

CA Firm Patel & Associates has a partner, CA Nikhil, who plans a new advertisement describing the firm's services. He is unsure whether one claim complies with the Advertisement Guidelines. Which course of action matches the ICAI Code of Ethics (13th edition) on professional behaviour?

Nikhil should ensure the advertisement is true to the best of his knowledge and belief and conforms to the Advertisement Guidelines, and, being in doubt, consult the Ethical Standards Board of ICAI. The Institute accepts no responsibility for the contents or claims made.

  1. APublish it, since the Institute accepts responsibility for the accuracy of advertisements that follow its guidelines
  2. BEnsure the contents are true to the best of his knowledge and belief and conform to the guidelines, and consult the Ethical Standards Board of ICAI if in doubtCorrect
  3. CPublish it and rely on the Institute to withdraw it if it is inappropriate
  4. DSeek approval from the client base before publishing, since the clients bear the risk of the claims

Explanation

The Code requires that advertisement contents be true to the best of the accountant's knowledge and belief and in conformity with the Advertisement Guidelines. It also states the Institute owns no responsibility for such contents or claims and encourages consulting the Ethical Standards Board when in doubt. Option 1 is wrong because it assigns responsibility to the Institute.

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