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

CA Rohit Bansal heads the audit practice of Bansal & Co. and is a senior partner. He wants to meet the Code's expectations on organisational culture. Which action is consistent with the ICAI Code of Ethics (13th edition) guidance for senior accountants in practice?

Introducing and overseeing ethics education and training and a whistle-blowing policy, while holding himself and others accountable, is consistent with the Code. The more senior the accountant, the greater the expectation to promote an ethics-based culture and protect those who report unethical behaviour.

  1. ALinking staff rewards only to billable hours so that productivity drives behaviour
  2. BIntroducing and overseeing ethics training and a whistle-blowing policy, while holding himself and others accountable for ethical valuesCorrect
  3. CLeaving ethical culture entirely to the ICAI, as the Institute is responsible for firm conduct
  4. DDiscouraging staff from reporting suspected unethical behaviour to avoid reputational harm

Explanation

The Code says senior accountants are expected, to the extent of their position, to encourage an ethics-based culture, for example through ethics training, performance and reward criteria promoting ethics, and whistle-blowing policies. Rewards based only on billable hours do not promote an ethical culture. Discouraging reporting contradicts the protection of whistle-blowers.

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