Significant Achievements /Initiatives of Ethical Standards board in 2013-14
- ICAI Code of Professional Ethics, 2014
Ethical Standards Board made its recommendations with regard to replacement of ICAI Code of Ethics, 2009 with refurbished, comprehensive ICAI Code of professional Ethics, 2014. The proposed code brings out much more details than the present edition – it has Divisions (with commentary) on The Chartered Accountants Act, 1949, the Chartered Accountants Regulations, 1988, Rules framed by the Central Government under the Chartered Accountants Act, 1949, Guidelines of the Council, etc. The Code awaits approval of the Council for coming into effect.
- Incorporation of IESBA Code of Ethics
As a member of IFAC, ICAI is under obligation to adopt the latest edition of IESBA Code of Ethics. Accordingly, the Ethical Standards Board has finalised its recommendations on adoption of provisions of IESBA Code of Ethics, 2013, which introduces concepts of conflicts of Interest, Breach Provision of the Code, etc. The recommendations have been placed before the Council, and await Council’s approval.
- ICAI Code of Conduct for elected, elected, nominated and co-opted representatives
Ethical Standards Board has finalized ICAI Code of Conduct for elected, nominated and co-opted representatives. It is pending for the consideration and approval of the Council of ICAI.
- Revision of Advertisement and Website Guidelines
Ethical Standards Board has made its recommendations with regard to revision of Advertisement and Website Guidelines of ICAI – synchronising the same with the proposed ICAI Code of Professional Ethics, and with an attempt to make them contemporary. The recommendations are pending for the consideration and approval of the Council of ICAI.
- Compilation of Disciplinary Cases
Disciplinary cases of ICAI since inception till date have been, for the first time, compiled in soft form in a CD by the Ethical Standards Board for use of the members of Study Groups to facilitate the examination of matters under examination of Ethical Standards Board.
- Programmes on Ethics
Ethical Standards Board, has in 2013 -14, introduced the concept of webinars, i.e. “any time any where learning”. The details of webinars have been provided under a separate head.
Besides, Ethical Standards Board organised a seminar on a topic of high contemporary relevance : “Anti Money Laundering measures, Benami Transactions, US FCP Act, 1977, U.K. Bribery Act, 2010 & Ethical Compliance Audit” at Mumbai on 14th December, 2013.
As to the International participation, CA. Nihar Niranjan Jambusaria, Vice-Chairman, Ethical Standards Board (2013-14) participated in the International Ethical Standards Board of Accountants (IESBA)– National Standards Setters(NSS) meeting held in May 2013 at New York. Further, there was participation in the Meeting of Committee on Professional Ethics and Independence of South Asian Federation of Accountants (SAFA) held in November, 2013 at Kolkata.
- CD Distribution
CD on 'E-Learning Initiative on Compliance of Code of Ethics' has been distributed to all Programme Organising Units (POUs) across the country for increasing awareness on ethics among the members.
Important Decisions of Ethical Standards Board in 2013-14
- A chartered accountant in practice may establish a TIN – FC, and may as well establish a TIN - FC under franchise from the other entity which is already a TIN – FC.
- Quick Response Code (QR Code) may be printed on the visiting Card by a member in practice, provided that the Code does not contain information that is not otherwise permissible to be printed on a visiting Card.
- A statutory auditor and tax auditor can not be valuer of the unquoted equity shares as it would create threats to independence of the auditor, which may not possibly be reduced by application of safeguards.
- The use of banner with name of CA firm is not permissible in terms of provisions of Items 6 and 7 of Part –I of First Schedule to The Chartered Accountants Act, 1949.