Professional Ethics – Test 2

As per Part IV of First Schedule of Chartered Accountants Act, 1949, a member of the Institute, whether in practice or not, shall be deemed to be guilty of other misconduct, if he is held guilty of any civil or criminal court for an offence which is punishable with imprisonment for a term not exceeding_________months.

Mr. Z, a Chartered Accountant was invited was invited by the Chamber of Commerce to present a paper in a symposium on the issue facing Indian Leather Industry. During the course of his presentation he shared some of the vital information of his client’s business under the impression that it will help the Nation to compete with other countries at international level.

A CA in practice appearing on television on budget proposals was introduced to the viewers, on the basis of the bio-data furnished by him, as the senior most partner of M/S Tick & Tag a leading firm of CA’s established in Delhi in 1980. CA will be guilty of professional misconduct due to:

PQR & Associates, Chartered Accountants have their website and on the letterhead of the firm it is mentioned that “Visit our website: http://www.pqr.com“. In the website the nature of assignments handled, names of prominent clients and fees charged is also displayed. Answer with reference to the provisions of Chartered Accountants Act, 1949:

S. a practicing chartered accounting gives power of attorney to an employee chartered accountant to sign reports and financial statements, on his behalf.

XYZ Associates, a Chartered Accountants Firm is having a relationship with a multi-national accounting firm in India. The ICUI required that all firms having networking relationship with any other entity need to furnish information online within the stipulated time. XYZ Associated failed to respond.

CA. Aman, a practicing Chartered Accounting, took over as the executive chairman of signora IT Ltd.on 01.04.2018. However, realizing about obtaining prior approval form the Council of the ICAI for engaging into other business, he applied to Council for permission within 10 days.

M/s LMN & Associates, a firm of Chartered Accountants responded to a tender issued exclusively for Chartered Accountants by an organisation in the area of tax audit. However, no minimum fee was prescribed in the tender document.

CA X was appointed as the Auditor of ABC Ltd. for 2018-19. Since he declined to accept the appointment, the Board of Directors appointed CA Y as the auditor in the place of CA X, which was also accepted by CA Y.

Which of the following is not an example of self-interest threats?

A professional accountant should act diligently and in accordance with applicable technical and professional standards while providing professional services. This fundamental principle is known as:

Accepting gifts or preferential treatment from a client result into:

Intimidation threats occur:

Defalcation or embezzlement of money received by a member in his professional capacity is a:

M/s. ABC, a firm of Chartered Accountants received Rs. 2 lakhs in March 2018 from a client to pay the Advance Tax. However, the firm has used that money for its own purpose and later on adjusted the same with the outstanding fee payable. M/s. ABC will be deemed to be guilty of professional misconduct

A member of the Institute who is an employee, if not exercise due diligence and is grossly negligent in the conduct of his duties, will be guilty of professional misconduct:

Mr. Z accepted the statutory audit of a sick unit-NCT Ltd., for the year ending 31.03.2018. During the course of audit, it was noticed that company’s net worth was negative for the year ended 31.03.2017 and there was also a liability of tax audit fees of 35,000 in favour of the previous auditor.

As per Clause 1 of Part I of First Schedule to the Chartered Accountants Act, 1949, a CA in Practice is deemed to be guilty of professional Misconduct if he allows any person to practice in his name as a Charted Accountant, unless such persona is also a

A member in practice shall be deemed to be guilty of professional misconduct if he accepts a position as auditor preciously held by another chartered accountant or certified auditor without first communicating with him in writing. Acceptable mode of communication for this purpose are:

A CA in practice is not entitled to engage in any other business or occupation other than the profession of accountancy except with the permission of the Council. However general permission is granted for which of the following activities:

Mr. X, A chartered Accountant in practice accepts an audit in respect of Partnership Firm, on condition that the partnership firm shares 5% of the profits of the firm for that year. On the basis on above which of the following is correct?

Mr. X acts as a registered valuer for the purposes of Direct Taxes & Duties and charges fees on basis of percentage of value of property values. Which of the following is correct?

Mr. A is CA who is working as a controller for ABV Ltd. in capacity of an employee. Which statement is true?

The specific number of tax audit assignments that an auditor, as an individual or as a partner of a firm, can accept is:

Resolution passed by the Council of ICAI, pursuant to Sec. 2(2)(iv) of Chartered Accountants Act, 1949, permits a CA in practice to render entire range of “Management Consultancy and other Services”. Which of the following is not covered within the meaning of “Management Consultancy and other Services”?