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CODE OF ETHICS
The mission statement of ESB :"To work towards evolving a dynamic and contemporary Code of Ethics and ethical behaviour for members while retaining the long cherished ideals of `excellence, independence, integrity' as also to protect the dignity and interests of the members".
Thus, Code of Ethics for members is not a mere publication of ESB, it is an ideology , carefully nurtured and developed by ESB, and synonymous with ESB.
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ESB : FORMATION For the formulation of ethical standards for members in response to changing conditions and environment , the Council of ICAI constituted Ethical Standards Committee (a non standing committee) at its 74th Meeting held in December, 1975.
The Committee was later also given the responsibility of evolving ethical standards , providing guidelines and to generally oversee the that the ethical standards were observed by the members.
NOMENCLATURE CHANGED
ESC, as it then was , later changed to Committee on Ethical Standards and Unjustified Removal of Auditors (CESURA), whereinafter it would be a fact-finding body and shall also be entitled to consider cases of unjustified removal of Auditors in Government Companies Public Sector Banks etc.
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CODE OF ETHICS
The Code of Conduct , was called as Code of Ethics for the first time in its ninth edition in 2001.
TAKING LEAD
During its nearly six decades of existence, ICAI has achieved recognition as a premier accounting body globally. Some of the (ethical) areas where ICAI is ahead of International standards are :( 1) Writing the books of accounts of auditee clients prohibited in ICAI , whereas IFAC Code of Ethics contains situations where a member may provide book-keeping services. (2) ICAI Code of Ethics provides that a statutory auditor of a company cannot also be its internal auditor whereas IFAC Code contains situations where a member may provide internal audit services. ( 3) Contingent fees is not allowed by ICAI whereas the provisions for contingent fees on non-audit services as contained under the IFAC Code of Ethics are elaborative. ( 4) Other areas where we are ahead are : having self -regulatory measures , MCS, Recommended scale of fees, Ceiling of Audit Assignments, Advertisement Guidelines, Website Guidelines, 14 etc.