Skip to content

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

CA Sunita Menon, senior partner of Menon & Co., wants to promote an ethics-based culture in her firm. She proposes four actions. Which action is NOT described in the ICAI Code of Ethics (13th edition) as an example of introducing, implementing or overseeing measures that promote an ethical culture in a firm?

Linking partner rewards solely to fee revenue is not an example. The Code lists ethics training, whistle-blowing policies, policies preventing noncompliance with laws, and reward criteria that promote an ethical culture. Pure revenue-based rewards do not promote ethics, so they fall outside the listed actions.

  1. AEthics and whistle-blowing policies
  2. BEthics education and training programs
  3. CPolicies and procedures designed to prevent noncompliance with laws and regulations
  4. DLinking partner rewards solely to the fee revenue each partner generatesCorrect

Explanation

The Code lists ethics education and training, firm processes and performance evaluation and reward criteria that promote an ethical culture, ethics and whistle-blowing policies, and policies to prevent noncompliance with laws. Reward criteria must promote an ethical culture, so rewarding solely on fee revenue does not qualify. The other three options are listed 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