Professional Ethics & Code of Conduct (Part-I)

Which of the following is NOT one of the five fundamental principles of ICAI’s Code of Ethics?

• Integrity

• Objectivity

• Professional Skepticism

• Confidentiality

Which of the following is an example of a Self-Interest Threat?

• A CA holding shares in a client’s company

• A CA auditing financial statements they prepared earlier

• A CA promoting a client’s position in legal disputes

• A CA being pressured by management to overlook errors

Which safeguard helps reduce the risk of a Familiarity Threat?

• Engaging independent reviewers for prior work

• Mandatory rotation of key audit personnel

• Encouraging advisory services for clients

• Relying on long-term client relationships for stability

What is required to qualify as a Fellow Chartered Accountant (FCA)?

• Passing an additional FCA examination

• 5 years of experience as an Associate Chartered Accountant (ACA)

• Direct nomination by ICAI
  
  

• Holding an MBA in Finance

Which of the following is a violation of Clause (3) of Schedule 1 under ICAI's Code of Ethics?

• A CA shares profits with another ICAI member

• A CA accepts a commission from a registered valuer for referring valuation assignments

• A CA charges referral fees from another CA in practice
  
  

• A CA enters into a profit-sharing agreement with another professional body recognized by ICAI

Under Clause (6) of Schedule 1, what is considered an act of solicitation?

• A CA responds to a tender issued by a professional services organization

• A CA advertises coaching services through hoardings and banners

• A CA applies for empanelment in a government department for audit work

• A CA announces a change in firm address in a professional journal

When is a CA allowed to share their firm profile with a prospective client?

• Only in response to a direct query from the client

• At networking events to attract new clients

• Through mass emails and promotional brochures

• By placing an advertisement in newspapers

What is the correct procedure for a CA before accepting an audit previously held by another auditor?

• Directly accept the appointment without verification

• Directly accept the appointment without verification

• Communicate with the outgoing auditor in writing and verify compliance with Sections 139 & 140 of the Companies Act

• Submit an application to ICAI for approval

CA Ramesh, a practicing CA, actively manages a real estate business without ICAI approval. Which rule does he violate?

• Clause (11) – Engaging in other business without permission

• Clause (6) – Soliciting clients

• Clause (1) – Integrity

• No violation

A CFO asks CA Sneha to overlook unreported foreign funds. What should she do?

• Ignore, as it’s an internal matter

• Report it under NOCLAR as possible money laundering

• Proceed if the CFO gives written assurance

• Approve to maintain client relations