16 Questions
What is the primary responsibility of a chartered accountant?
To act in the public interest
Which of the following is considered an inducement?
Preferential treatment
What does an inducement aim to do?
Influence behavior without necessarily having improper intent
Which of the following is NOT considered an inducement?
Transparency in financial reporting
What is considered professional misconduct under Clause 5 of the Chartered Accountants Act?
Failure to disclose a material fact known to the accountant, which is necessary for making a financial statement.
What behavior would violate Clause 7 of the Chartered Accountants Act?
Exercising due diligence and avoiding gross negligence in professional duties.
Under which clause would a Chartered Accountant be guilty of misconduct for failing to obtain sufficient information for expressing an opinion?
Failing to obtain sufficient information necessary for expressing an opinion.
What kind of conduct is prohibited by the Chartered Accountants Act under 'D.FINANCIAL INTERESTS, COMPENSATION AND INCENTIVES LINKED TO FINANCIAL REPORTING AND DECISION MAKING'?
Manipulating information or using confidential information for personal gain.
What was the consideration for the sale of land to Zest Ltd?
₹ 40 crores plus a premium of 6%
How was the transaction of selling the land and repurchasing it treated in the Statement of Profit and Loss?
Treated as a sale including the profit arising on disposal
Why should Infostar Ltd not have derecognized the land from the financial statements?
Because control is not transferred as Zest Ltd.’s ability to use and gain benefit from the land is limited
According to Ind AS 115, under what conditions can a repurchase agreement be considered for qualifying as a sale?
When control is transferred to the buyer
What should a Chartered Accountant do if they become aware of non-compliance or suspected non-compliance?
Seek to obtain an understanding of the matter and inform an immediate superior
Under what circumstances would disclosure of a matter to an appropriate authority be precluded?
If it is contrary to law or regulation
What action should a Chartered Accountant take if their immediate superior appears to be involved in a non-compliance matter?
Inform the next higher level of authority within the employing organization
What is the purpose of making disclosure of a matter to an appropriate authority?
To enable an appropriate authority to cause the matter to be investigated and action to be taken in the public interest
Test your knowledge of the Code of Ethics for chartered accountants, specifically focusing on their responsibility to act in the public interest. Understand the requirements and application materials outlined in the Code to uphold professional standards and ethical principles.
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