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

CA Neha Kulkarni is a partner who wants to encourage an ethics-based culture in her firm. She is considering four actions. Which one is listed in the ICAI Code of Ethics (13th edition) as an example of an action a senior chartered accountant in practice might take?

Introducing and overseeing ethics and whistle-blowing policies is the listed example. The Code names ethics training, reward criteria that promote an ethical culture, whistle-blowing policies and policies to prevent noncompliance with laws. Billing-only rewards, shifting advertising responsibility to ICAI, or limiting training to articled assistants are not examples.

  1. ALinking partner remuneration only to billing targets, so that high-fee partners are rewarded
  2. BIntroducing and overseeing ethics and whistle-blowing policiesCorrect
  3. CAsking the Institute to accept responsibility for the firm's advertisements
  4. DRestricting ethics training to articled assistants only

Explanation

The Code lists ethics education and training programs, performance evaluation and reward criteria that promote an ethical culture, ethics and whistle-blowing policies, and policies to prevent noncompliance with laws. Billing-only rewards do not promote an ethical culture. The Institute expressly owns no responsibility for advertisement contents. The Code does not limit training to articled assistants.

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