Codes of ethics

[irfan kazim]

AOA,
what is the icap's code of ethics and five principle of profession ethics. breifly explain first introduce in simple mude and with simple example. and the circumstances in which a chartered accountant operates may give rise to specific threats to compliance with these principles.

[maqszaman]

You will be surprised that the ICAP code of professional conduct consist of one and half pages only, rest is explanation of that. It doesn't cover many aspect of profession. This a lip service to the profession. And ICMAP has a very premitive code of conduct that you can't call it Code of Professional Conduct at all. This Code of conduct is part of the Acts which are required under constitution of Pakistan.

[Mujahid]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by maqszaman</i>
<br />You will be surprised that the ICAP code of professional conduct consist of one and half pages only. This is a just not even a lip service to the profession. And ICMAP has no code at all.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Search before you post a comment.

http//www.icap.org.pk/userfiles/file/CodeofEthicsRevised.pdf
http//www.icmap.com.pk/code_cond.htm

[awaisaftab]

Maqszaman,
You are new commer on the forum. You have only 5 posts at your end. So please think several times before posting any comments because here are hundreds of professionals who have vast knowledg and information.

Regards,

Awais Aftab

[A R]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by awaisaftab</i>
<br />Maqszaman,
You are new commer on the forum. You have only 5 posts at your end. So please think several times before posting any comments because here are hundreds of professionals who have vast knowledg and information.

Regards,

Awais Aftab
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

He is Right... and cod of ethics should be prepared thoroughly for papers too.

[maqszaman]

Hi Awais,

Thanks for your advise. However, this code of conduct was not established by ICAP but by the IFAC that ICAP adopted. It is same example of many renouned Pakistani writes who take American books change $ to Rs. Joesuf to Yousuf and publish the book with their names on title. Could you please let me know that how many CA have been prosecuted by ICAP under this Code of Conduct. I can give you many example of issues not addressed in code of conduct but I just don't want to enter in this conflict.

[kamranACA]

Dear

Pakistan has chosen to fully adopt complete set IFRSs (issued by a board under IFAC) for accounting purpose of all its significant and listed companies. You will appreciate that there are certain other reporting frameworks in the world and it has been matter of choice to do so. Similarly, in audit Pakistan follows full set of ISAs issued by a board constituted under IFAC.

ICAP and ICMAP are the permanent members of IFAC you must not forget. ICAP has its representatives on standard setting boards of IFAC for example Mr. Abdullah Yousaf, who had been a member of IAASB has again been taken on this board for a term of another 3 years. If you know the process of promulgation, discussion, debate, criticism and all phases of development of standard or pronouncement from a suggestion to exposure draft and then standard or pronouncement, you would be knowing what role the members of IFAC play and are supposed to play in standard setting (pronouncement finalization) process.

The standards, pronouncements, codes and other such documents and guidelines are neither the orders of a Marshal Law administrator nor are developed as highly confidential atomic reactor architectures. These are developed through a dialogue process and such dialogue and thought provoking process goes from top to down as well as down to top and entails the participation of all the member bodies of IFAC. In return the members (individual professionals) of such member bodies (institutes) of IFAC also participate thoroughly in such development since most of the pronouncements are sent for their comments and suggestions. Bodies like ICAP (may be ICMAP as well) have formed sub-committees and technical committees to meet, deliberate and finalize comments or suggestions after taking into account the detailed comments obtained from individuals. Even after final issuance of a pronouncement, it is considered for adoption locally with reference to suitability of time etc.

For example, Code of Ethics is revised by IFAC recently in July 2009, and is being deliberated at sub-committees for adoption.

So dear, this is not a matter of taking "American books changing $ to Rs., Joesuf to Yousuf and publish the book with their names on title".

Be informed, if you are not, that IFAC is federation and the federation is constituted by members. The finalization of its code of ethics has (as a MUST) entailed inputs of members all over the world including ICAP and ICMAP (and in return, the members of ICAP and ICMAP). So, adopting IFAC's code of ethics is far more beneficial, standardized, comparable, acceptable, and in a way or other NECESSITATED.

Why I said necessitated? you may not be knowing that following the Code of Ethics developed by IFAC is obligatory/mandatory for the member bodies of IFAC (and in return by the individual members of such member bodies).

Your objection speaks about some deficiency of knowledge on the subject matter. This is by no means your disgrace. If you have queries or reservations you have a right to raise it on the forum within the limits of decency. YouR query might have helped us or others to think and conclude what is what.

However, I would like suggesting that you should give some time to understand the procedures and requirements. Where there is some confusion, it should be raised as a query instead of as an objection because objection without strong basis will bring nothing but objections to you as well.

Keep on posting and happy new Hijri Year to you and all others.


Regards,


KAMRAN.

[Greatkhans]

Hello,

My question is that can an audit firm or its affiliate render accounting and consulting services to its audit client?

Thanks

[kamranACA]

Dear

Code of ethics does not allow auditors to perform management functions of their clients. However each jurisdiction has decided what activities have to be included in management functions.

In Pakistan, auditors cannot provide such services (excluding tax advisory) to their clients that are the listed companies.

For materiality reasons and keeping in view meager amount of larger public interest in unlisted companies, so far, a strict restrictions has not been imposed on their auditors. However, it appears this will also happen in coming future.

Regards,



Kamran.

[Greatkhans]

Kamran Bhai,

Thanks you very much for your clarification. I read somewher a term "Ethical decision making model". I could not understand this? One more thing is that can an audit firm recomeand an accounting software to its clients?

You am looking for your guidance.

[kamranACA]

Dear

I have not came across the term you have mentioned. You may go through the Code of Ethics of IFAC revised during the current year.

The Code of Ethics allows auditors to provide fullest and fair information on an aspect to the management (TO APPRISE THEM ON AN IMPORTANT ISSUE) and leave the management to take its own decision and make its own judgments. Auditors are prohibited to influence the judgements and decisions of the management in any case. However, code is lenient on immatreial and insignificant administrative issues. I refer you to clauses 290.159 to 290.170 of the revised code of ethics issued by IFAC.

Where the auditor can be asked by its client for technical advice on some accounting or allied issues (prescribed in Code), still, the judgment and decision has to be made by the management and auditors' advice must not influence it.

Auditor must not get involved in desiging and implementation of systems, procedures and controls of its audit client.

In my view auditor, if find reasons to do so, can in his management letter object on out-dated information system, can suggest the management to explore new opportunities to improve the system and can indicate the best possible alternatives. But he has to leave explicitly on management to make inquiries, judgments and take decision as to what would be most suitable for their business, provided they wish to follow auditors' suggestion to improve the system.

In no circumstances, auditor should involve in decision making/selection process or devloping of IT system for its client or in implementation of any such system.

So the thin lines have to be carefully observed and followed.

Hope you are clarified.

Regards,



KAMRAN.

[Greatkhans]

Hi,

Could anyone please let me know what psychometric examination is how it works?
Help is appreciated.

Thanks

[Toronto_Boy]

See page 5 of following link.

http//www.cpa-exam.org/alerts/download/cpaalertfall09.pdf

[Greatkhans]

Thanks Kamran Bhai & Toronto Boy