ICAI Code of Ethics for chartered accountants applicable from 1 April 2019. Professional accountant required to comply with five fundamental principles
This ICAI Code of Ethics is applicable from 1 April, 2019. However, Where guidance contained in this Code relates to
engagements commencing prior to that date, previous guidance may be applied up to completion of the said engagements. Transitional arrangements are available in respect of specific sections of this Code.
The Code requires professional accountants to comply with the fundamental principles of ethics. The Code also requires them to apply the conceptual framework to identify, evaluate and address threats to compliance with the fundamental principles. Applying the conceptual framework requires exercising professional judgment, remaining alert for new information and to changes in facts and circumstances, and using the reasonable and informed third party test.
The Code has distinguished Professional Accountants into following two categories:
In addition, the Code requires professional accountants to be independent when performing audit, review and other assurance engagements. The conceptual framework applies in the same way to identifying, evaluating and addressing threats to independence as to threats to compliance with the give fundamental principles.
There above said five fundamental principles of ethics for professional accountants are as under:
(a) Integrity
(b) Objectivity
(c) Professional Competence and Due Care
(d) Confidentiality
(e) Professional Behaviour
A professional accountant is required to comply with each of the above fundamental principles.
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