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

CA Imran Sheikh issues an advertisement for his firm in a local newspaper. He is unsure whether one proposed claim complies with the Advertisement Guidelines. Which course of action matches the ICAI Code of Ethics (13th edition)?

Imran should make sure the advertisement is true to the best of his knowledge and belief and conforms to the Advertisement Guidelines, and consult the Ethical Standards Board of ICAI if in doubt. ICAI accepts no responsibility for the contents or claims of any advertisement.

  1. APublish it, since ICAI takes responsibility for the contents of approved advertisements
  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 if in doubtCorrect
  3. CPublish it, since only the truthfulness of the contents matters and the Guidelines are optional
  4. DSeek written approval from the client's audit committee before publishing

Explanation

The Code requires the contents to be true to the best of his knowledge and belief and in conformity with the Advertisement Guidelines. It states the Institute owns no responsibility for the contents or claims. Where in doubt, he is encouraged to consult the Ethical Standards Board of ICAI. The first option is wrong because ICAI disclaims responsibility.

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