Page 358 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

Part 4A: Independence for Audit and Review Engagements, applicable when performing audit or review
engagements.
Part 4B: Independence for Assurance Engagements Other than Audit and Review Engagements, applicable
when performing non-audit assurance engagements.
Glossary: Contains defined and described terms with specific meanings in the Code, including lists of
abbreviations.

(CNO-PE.080) Structure of Code of Ethics & Compliance.
1A Introduction: Outlines the section's subject matter, requirements, and application material.
1B Requirements: Sets both general and specific obligations related to the section's subject matter.
1C Application Material: Provides context, explanations, suggestions, illustrations, and other guidance to assist
in complying with the requirements.
Compliance: Professional accountants must comply with the Code. However, laws or regulations may prevent
compliance with certain parts of the Code. In such cases, these laws and regulations take precedence, but the
accountant must still comply with all other parts of the Code.
"Fundamental Principles in the Code of Ethics of ICAI for Professional Accountants"
To meet the goals of the accountancy profession, professional accountants must adhere to the fundamental
principles of Code of Ethics as given below.

(CNO-PE.120) Integrity – Subsection 111
Def Integrity: A professional accountant must uphold the principle of integrity, which necessitates honesty and
straightforwardness in all professional and business relationships.
Don’t Associate: An accountant should not knowingly associate with any information that is materially false,
misleading, negligently provided, or omits or obscures required information in a misleading manner.
Disassociate: If an accountant realizes they have been associated with such misleading information, they must
take steps to disassociate themselves from it.
Modification: An accountant is not in breach of the above if they provide a modified report concerning the
matter.

(CNO-PE.140) Objectivity- Subsection 112
Objectivity: A professional accountant must adhere to the principle of objectivity, which means not allowing
bias, conflicts of interest, or the undue influence of others to compromise their professional or business
judgment.
Undue Influence: An accountant should not engage in a professional activity if a circumstance or relationship
unduly influences their professional judgment regarding that activity.

(CNO-PE.160) Professional Competence and Due Care – Subsection 113
1. Competence: A professional accountant must attain and maintain professional knowledge and skill at the
level required to ensure competent service to clients or employing organizations, in line with current technical
and professional standards and relevant legislation.
2A. Maintain: Maintaining professional competence requires a continuing awareness and understanding of
relevant technical, professional, and business developments. This is facilitated by continuing professional
development.
2B. Supervision: The accountant should take reasonable steps to ensure that those working under their authority
have appropriate training and supervision.
3.Diligence: The accountant must act diligently, carefully, thoroughly, and timely, in accordance with
applicable technical and professional standards.

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