Code of Ethics for Public Accountants and Chartered Accountants Act

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Questions and Answers

What does the term 'Professional Ethics' encompass?

Organizational standards only

Personal standards only

Personal, organizational, and corporate standards (correct)

Corporate standards only

Which group of individuals impose a public interest responsibility on Chartered Accountants?

Stakeholders (correct)

Employees

Government

Clients

What is the purpose of the Code of Ethics for Professional Accountants?

Manage financial audits

Regulate tax laws

Set accounting standards

Establish ethical requirements (correct)

In what year was the Chartered Accountants Act enacted?

1949 Signup and view all the answers

What is the primary responsibility of Chartered Accountants when providing assurance engagements?

Maintain independence Signup and view all the answers

What do fundamental principles of professional ethics guide Chartered Accountants in?

Building trust with stakeholders Signup and view all the answers

According to the Chartered Accountants Act, 1949, which of the following is true regarding the requirement to hold a Certificate of Practice to practice as a Chartered Accountant?

Only members of the Institute are required to hold a Certificate of Practice to practice as a Chartered Accountant. Signup and view all the answers

What is the consequence of a Chartered Accountant's Certificate of Practice being cancelled by the Council?

The Chartered Accountant can no longer practice as a Chartered Accountant. Signup and view all the answers

What is the annual fee that a Chartered Accountant must pay to the Council to maintain their Certificate of Practice?

The annual fee is determined by the Council through a notification. Signup and view all the answers

Which of the following is true regarding the Chartered Accountants Act, 1949's provisions for practicing as a Chartered Accountant?

The Act applies to Chartered Accountants practicing both in India and elsewhere. Signup and view all the answers

What is the main purpose of the Chartered Accountants Act, 1949 in relation to practicing as a Chartered Accountant?

To regulate the practice of Chartered Accountants and ensure they maintain professional ethics. Signup and view all the answers

How does the Chartered Accountants Act, 1949 treat individuals who were practicing as registered accountants or holders of restricted certificates immediately before the commencement of the Act?

The Act exempts such individuals from the requirement to obtain a Certificate of Practice for a period of one month after the first meeting of the Council. Signup and view all the answers

What information can be disclosed in client Companies’ offer documents regarding the Chartered Accountant acting as Advisor to the Issue?

Name and address under the caption “Advisor/Consultant to the Issue” Signup and view all the answers

Why are members of the Institute who are Directors in Companies, members of Political parties, or hold positions in clubs not permitted to mention these positions?

To comply with Section 7 of the Act Signup and view all the answers

How can a member of the Institute who is also a Cost Accountant designate themselves?

Use A.C.M.A (Associate) or F.C.M.A (Fellow) after their name Signup and view all the answers

When are members permitted to mention membership in a foreign Institute of Accountancy?

When recognized by the Council through a Memorandum of Understanding (MoU) Signup and view all the answers

What is the rationale behind prohibiting Chartered Accountants from prominently displaying their positions in other organizations?

To uphold professional ethics and avoid potential conflicts of interest Signup and view all the answers

In what capacity can a Chartered Accountant be mentioned in client Companies’ offer documents?

As an Advisor/Consultant to the Issue Signup and view all the answers

Study Notes

Chartered Accountants acting as Advisors or Consultants in capital issue documents can be listed under "Advisor/Consultant to the Issue", but not prominently.
Members of the Institute who are Directors in companies, political party members, or hold positions in clubs cannot mention these roles due to Section 7 of the Act.
Members can use A.C.M.A or F.C.M.A after their name if they are also Cost Accountants.
Members are allowed to mention membership of foreign Institutes recognized by the Council through MoU/MRA.
The Code of Ethics for Chartered Accountants includes fundamental principles, conceptual frameworks, independence requirements, and provisions for professional misconduct.

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Description

Explore the exhaustive code of ethics established for public accountants, including fundamental principles, conceptual framework, and independence requirements. Learn about the specific provisions under the Chartered Accountants Act, 1949 that address professional misconduct.