Code of Ethics for Chartered Accountants

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 Signup and view all the answers

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. Signup and view all the answers

What behavior would violate Clause 7 of the Chartered Accountants Act?

Exercising due diligence and avoiding gross negligence in professional duties. Signup and view all the answers

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. Signup and view all the answers

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. Signup and view all the answers

What was the consideration for the sale of land to Zest Ltd?

₹ 40 crores plus a premium of 6% Signup and view all the answers

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 Signup and view all the answers

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 Signup and view all the answers

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 Signup and view all the answers

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 Signup and view all the answers

Under what circumstances would disclosure of a matter to an appropriate authority be precluded?

If it is contrary to law or regulation Signup and view all the answers

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 Signup and view all the answers

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 Signup and view all the answers