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

CA Tanvi Shah publishes an advertisement for her firm claiming it is 'the only firm with ICAI approval for forensic services'. She is unsure whether a proposed follow-up advertisement is appropriate. Which statement is consistent with the ICAI Code of Ethics (13th edition) on professional behaviour?

The advertisement's contents must be true to the best of her knowledge and belief and comply with the Advertisement Guidelines. ICAI accepts no responsibility for her claims, and where she is in doubt she is encouraged to consult the Ethical Standards Board of ICAI.

  1. AICAI takes responsibility for advertisement contents once the Advertisement Guidelines are followed
  2. BThe contents must be true to the best of her knowledge and belief and conform to the Advertisement Guidelines; ICAI owns no responsibility for her claims, and in doubt she is encouraged to consult the Ethical Standards BoardCorrect
  3. CShe must obtain ICAI's prior approval of every advertisement, and ICAI then guarantees the claims
  4. DTruthfulness is needed only for statements about fees, not about services

Explanation

The Code requires advertisement contents to be true to the best of the accountant's knowledge and belief and in conformity with the Advertisement Guidelines. It states the Institute owns no responsibility for such contents or claims. If in doubt, she is encouraged to consult the Ethical Standards Board of ICAI. The options claiming ICAI responsibility or approval contradict this.

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