Code of Ethics Flashcards
Are code of Ethics and Personal Ethics same or different
Yes they are the same
whether the ethics of ca would describe misconducts conducted by By CA in prof capacity only or both prof and personal capacity ?
Both, professional and personal capacity
jist : if a person is doing something that hampers the credentials of the profession even if he does it in the personal capacity, he is guilty of violating the code of ethics.
eg : if a person did 2 marriages and say the 2nd wife goes complaining to the Instite to take action against him, Institute won’t take a na ction because it doesn’t affect the ICAI in that.
eg. if a person is in the cricket stadium and he goes to meet the cricketers even though its not allowed and wears a t-shirt which says I am a proud CA, then icai will take an action against him.
COde of ethics and prsonal ethics have no difference as such.
Manual has code of ethics of CA
it does not bind him only when he is acting in the capacity of a chartered accountant. It will bind him whether he is acting as a CA or not.
What is code of ethics act regulation guideline manual circular rules notification
Manual
Manual
define and give guidelines give rules and regulations provisions to convey what us expected but there is requirement of authority to punish the guilty that will come frm the act only which is passed in the parliament
CA act, 1949
CA regulations, 1988
MAnual - code of ethics
before even constitution of India was made
all the provisions of the act don’t talk about the professional conducs and misconducts.
Regulations is not made only to regulate a CA
it also includes how to apply for COP
for practice etc and called it as code of ethics
From that a manual got created in which all the professional conducts and ethics of a CA are laid down
MAnual - code of ethics made in whch year
2009
and revised - 2020
We studying code of ethics 2020
3 manuals of code of ethics
- International code/ ISBA code
- Domestic code/ ICAI code
- Case law referncer
The content of these three manuals
It contains refernce of the ACT,
Regulations, Guidelines of council refernce
Its a combo of act, provisons and guidelines
collected together that define the ethical requirements of a CA and they are put toether and called as Code of ethics
the most important module and why
Domestic
context - IFRS and IND as similar
ICAI - member of International body
that propogates across the globe Internationally auditing prcatices should be standardised. SO that the CA get recognition internatiaonally and also be a part of this internationally.
INternatinal Federation of accountants
has body IESBA International Ethical Standards Board for Accountants
SImilary there is also International Ethics of rofes
IS volume 1 mandatory or volume 2 or both
Volume 1 is principal based Ans both
IESBA and domestic
Which of the following are mandatory to be followed ?
a. standard
b. statement
c. Guidance notes
Standard and statement
What will the code mostly prescribe
a. TO Dos for a CA, code of conduct
b. Things not do to be done by CA, i.e misconducs
option b - misconducts
ICAI will prescribe misconducts for a CA
a. In his professional coduct
b. prof as well as personal
option b
COE is made for
all CAs
CA in practice CAiP
ans ALL CA
COE will be same for
a. all CAs
b. different provsions would apply to CAin and not CAip
option b
Advertisements are prohibites for
a. ALl CAs whether in practice or not
b. only CAip
ans. only CAiP
MAjority of prohibitions of misconduct
would be for
a. CAiP
b. CA not in practice
ans. CAiP
CA in his job conducting audit of his employer whether deemed to be in practice ?
NO
2 CAs Shriya and Khushali have made a company SK & Associates, performing
Internal Audit, tax consultancy, etc for consideration
CA are directors in the company
a. deemed to be in practice
b. not deemed to be in practice
Not deemed to be in practice
because only Individual and partnership and not a company included in definition.
So, in that case people will create companies only.
In section 25, if you wanna do any attestation work, whenever you sign because of your authority to sign as a CA in practice eg a statutory audit, company audit etc will be received only as a CA (individual) or firm and not under any other capacity.
For a CA in practice in your opinon the gamut of MCS (MAnagement consultancy services is
- larger the better
- lesser the better
lesser the better
CA in practice is managing funds of NRI?
The question mentions NRI only for a diversion. The main aim is to check that…
fund management means portfolio management, that is prohibited.
Merchant banking is allowed as a CA?
4th type of merchant banking is allowed,
where they do not do underwriting they give only consultancy services.
A CAip is giving Merchant banking services, guilty?
yes, he’s guilty.
