Page 360 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

1B. Avoid: An accountant should not engage in any activity that could harm the integrity, objectivity, or
reputation of the profession.
2A. Promotion: When promoting personal work, an accountant should not bring the profession into disrepute.
A professional accountant should be truthful and avoid making exaggerated claims about their services,
qualifications, or experience.
2B. Respect Others: An accountant should not make disparaging or unsubstantiated comparisons to others'
work.
2C. Guidelines: Accountants must not violate Advertisement Guidelines issued by the Council of the Institute.
If unsure, they should consult the Ethical Standards Board of ICAI.

(CNO-PE.280) Conflict Resolution Between Fundamental Principles
1A. Compliance: Accountants must adhere to the fundamental principles of ethics, which define their expected
behaviour.
1B. Framework: The conceptual framework provides the approach for accountants to assist in complying with
these principles.
2A. Conflict: If a conflict arises between fundamental principles, accountants should consult with relevant
parties, including those within their firm, those charged with governance, the Institute, or legal counsel.
2B. Documentation: Accountants should document issues, discussions, decisions, and their rationale. This does
not absolve them from the responsibility to exercise professional judgment to resolve conflicts or disassociate
from conflicting matters, unless prohibited by law or regulation.

(CNO-PE.300) Threats, Evaluation of Threats and Safeguards
The conceptual framework specifies an approach for a professional accountant to:
(i) Identify threats to compliance with the fundamental principles.
(ii) Evaluate the threats identified; and
(iii) Address the threats by eliminating or reducing them to an acceptable level.

(CNO-PE.320) Types of Threats (Shortcut –SSAFI)
Threats to compliance with the fundamental principles fall into one or more of the following categories:
Self-Interest: The risk of a professional accountant's judgment being unduly influenced by personal financial
or other interests.
Self-Review: The risk of an accountant failing to critically evaluate the outcomes of their past judgments or
activities, which may affect their current work.
Advocacy: The risk of an accountant excessively promoting a client's or employer's position, thus compromising
their objectivity.
Familiarity: The risk of an accountant being overly sympathetic or accepting of a client's or employer's work
due to a long-standing or close relationship.
Intimidation: The risk of an accountant being discouraged from acting objectively due to real or perceived
pressures, including undue influence.

(CNO-PE.340) Examples of each Category of Threat when undertaking a Professional service (Practice)
The following are examples of facts and circumstances within each of those categories of threats that might create
threats for a professional accountant when undertaking a professional service:
Self Interest Threat

(Before Assignment)
Relationship: A professional accountant having a close business or personal connection with a client, which
could create bias or a conflict of interest, affecting their objectivity.

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