Code of Ethics

Sec. 100 to 120

Jamshaid Akhtar ACA

Structure of Code of
Ethics 2019

Part 1 Part 2 Part 3 Part 4

Compliance with Fundamental Conceptual Part 4 a Part 4 b

CAs in Business CAs in Practice Independence for Audit Independence for Assurance
Code Principles Framework
Sec.200 to 299 Sec.300 to 399 and Review Engagements other than
Sec.100 Sec.110 Sec.120
Engagements Audit and Review
Sec.400 to 899 Sec. 900 to 999

ICAP Code of Ethics

Derived from IESBA applied to safeguard

Types of Sections
Code of ehtics public interest

R A
Obligation/ Application/Context/ Legends:
Requirement Application/ FP: Fundamental Principles
Sections Suggestion EO: Employing Organization
PJ: Professional Judgement
CF: Conceptual Framework
C.I: Confidential Information

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 Code of Ethics
Sec. 100 to 120
Jamshaid Akhtar ACA
Fundamental
Principles (FPs) R. CA shall comply with all FP
Sec.110

Professional Competence
Objectivity: Professional Behavior:
Integrity: & Due Care; Confidentiality:
-unbiased -attain & maintain knowledge -comply with laws
-straight forward -non-disclosure
-no conflict of interest -avoid discrediting
-honest -act diligently & as per applicable
-no undue influence profession
standards (Technical, Professional)

If CAs identify breach of the provision If CAs identify unusual circumstances that
of code; lead to;
-evaluate significance -disproportionate outcome due to
-take actions available application of code
-may report to affectees, member -outcome not in public interest
body, regulator, oversight authority Consult with member body or regulator
Sec.100.4 to 100.4A1 Sec.100.3A2

A
Threats:
-can be created due to circumstances and
relationships R 120.6 CA shall identify threats to compliance with FP
-a threat can affect more than one FPs
Sec.120.6A2 to A4

Advocacy threat: Familiarity threat: Intimidation threat:

Self Interest threat: Self Review threat:
-promotion of client/EO long or close -actual or perceived
-financial or other -inappropriate review of
to point that impaired relationship with pressure that impaired
interest previous judgement
objectivity client/EO objectivity

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 Code of Ethics
Sec. 100 to 120
Why:
Jamshaid Akhtar ACA Conceptual Framework (CF):
-specific threats arise based How to Apply CF:
-CF set out requirements & application material
on circumstances and nature -Exercise PJ
-Deter from concluding that situation is permitted
of assignment -Remain alert for new info & changes
bec not prohibition by code
-impossible to define every -Use reasonable informed party test
Sec. 120
situation

Identify threats

Types of threats
same as in A

Take into account

Apply reasonable
qualitative &
informed party test
quantitative factors

Evaluate to determine
Remain alert for new info to see; whether threat is at Use following for evaluation:
-impact on level of threat acceptable level or not -CCG
-safeguards already applied are appropriate -education, training & experience for profession
-new threat arises (follow all previous steps) -complaint system
-explicit requirement to report breaches
If not at acceptable level, eliminate or -professional/Regulatory monitoring
reduce to acceptable level by;
i. eliminating interest or relationship
ii. applying safeguard, or
iii. declining or ending professional activity

Can threat be
eliminated or reduced
Yes No
to an acceptable low
level by i or ii?

Document and Decline or

continue professional discontinue
activity Form overall conclusion by; professional activity
-reviewing previous significant
judgment/ conclusion
-reasonable informed party test

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 Code of Ethics
Sec. 100 to 120
Jamshaid Akhtar ACA
Integrity (111)

Not knowingly
Straight forward and associated with
honest report, returns etc.
that contains

-false or misleading info

Fair dealing & If provide modified -info furnished recklessly
truthfulness opinion then there -omits or obscures info
would be no breach (take steps to disassociate if
finds out)

Professional
Competence and Due R 113.2 CA shall take reasonable steps for compliance
Care (113)

Professional
Due Care
Competence

Attainment of Maintenance of Diligently:

Act as per applicable
professional professional according to requirement of
technical & professional
competence competence assignment, carefully,
standards
thoroughly and on timely basis

Continuous professional
development in technical,
professional, business
development

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 Code of Ethics
Sec. 100 to 120
Jamshaid Akhtar ACA

Confidentiality (114)

Remain alert for Should be respected

Maintain for past, current Not disclose except as
inadvertent disclosure to Maintain within firm or Not use for personal by staff under CAs
and prospective per laws & professional
close/immediate family or organisation advantage and person giving
clients/employers duty
close business associate advice to CAs

Disclosure of CI is
permitted

Relevant factors at the time of disclosure;

Require by law; Permitted by law & Professional duty if not prohibited by law:
-legal proceedings authorized by -see if interest of any parties could be harmed
-for QCR
-public authorities client/EO -all info known and substantiated
-inquiry by member or regulatory body
-type of communication
-to protect professional interest in proceedings
-addressee
-comply technical or ethical standards
-whether addresses are appropriate

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