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

CA Tarun, who is in practice, plans a newspaper advertisement for his firm. He is unsure whether one proposed form of advertising is appropriate. Which course of action is in line with the Code?

He should ensure the advertisement is true to the best of his knowledge and belief and complies with the Advertisement Guidelines, and consult the Ethical Standards Board of ICAI if in doubt. The Institute does not take responsibility for the contents or claims of the advertisement.

  1. APublish it, since the Institute takes responsibility for the contents of advertisements
  2. BDrop the matter, as consulting the Institute on advertising is prohibited
  3. CEnsure the contents are true to the best of his knowledge and belief and conform to the Advertisement Guidelines, and consult the Ethical Standards Board of ICAI if in doubtCorrect
  4. DPublish it after obtaining the approval of the client's management

Explanation

The Code requires the contents of an advertisement to be true to the best of the accountant's knowledge and belief and in conformity with the Advertisement Guidelines. It also encourages consulting the Ethical Standards Board of ICAI when in doubt. The Institute owns no responsibility for the contents or claims.

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