Skip to content

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

CA Nikhil Bansal, a partner of a mid-sized firm, is preparing the firm's internal policies. He wants to follow the Code's guidance on promoting an ethics-based culture, taking account of his seniority. Which action is listed in the Code as an example of what might be taken?

Introducing and overseeing ethics and whistle-blowing policies is the listed example. The Code says senior accountants should promote an ethics-based culture through training programs, ethical reward criteria, whistle-blowing policies and procedures to prevent noncompliance with laws, not through revenue-only incentives.

  1. ALinking partner rewards solely to fee revenue growth
  2. BIntroducing and overseeing ethics and whistle-blowing policiesCorrect
  3. CRestricting ethics training to articled assistants alone
  4. DLeaving compliance with laws to individual staff without firm procedures

Explanation

The Code gives examples including 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. Rewards based solely on fees do not promote an ethical culture, and restricting training or avoiding procedures contradicts the examples.

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