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> Professional ethics encompass the personal, organizational, and corporate standards of behavior expected by In simple words we can say that professional conduct of an individual.

> The term professionalism originally applied to vows of a religious order. By at least the year 1675, the term had seen secular application and was applied to the three learned professions: Divinity, Law, and Medicine. The term professionalism was also used for the military profession around this same time.

> Professionals and those working in acknowledged professions exercise specialist knowledge and skill. How the use of this knowledge should be governed when providing a service to the public can be considered a moral issue and is termed professional ethics.

> Examples of professionals are CA, Lawyer, Actuary, CS.

> Professionals are capable of making judgments, applying their skills, and reaching informed decisions in situations that the general public cannot because they have not attained the necessary knowledge and skills.

> It shall include:-

1) Following the rules and regulations as applicable.

2) Being courteous and respectful.

3) Without using institution resources (like printer, internet, scanner) without permission.

4) Provide professional services diligently.


> Integrity: – A professional accountant should be straightforward and honest in all professional and business relationships.

> Objectivity: – A professional accountant should not allow bias conflict of interest or undue influence of others to override professional judgments.

> Professional Competence And Due Care :-

♦ A Chartered Accountant has a continuing duty to maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service.

♦ A professional accountant should act diligently and in accordance with applicable technical and professional standards while providing professional services.

> Confidentiality: – A Chartered Accountant should respect the confidentiality of information acquired as a result of professional and employment relationships and should not disclose any such information to third parties without proper and specific authority unless there Is legal or professional right or duty to disclose.

> Professional behavior: – A professional accountant should comply with relevant laws and regulations and should avoid any action that discredits the profession


> Service to others.

> Assessment of client needs.

> Theoretical body of knowledge obtained through extended pre- service education.

> Standards for entry, practice, and ethical conduct Professional association to maintain standards.

> Continuing education and lifelong learning.


Most professionals have internally enforced codes of practice that members of the profession must follow to prevent exploitation of the client and to preserve the integrity of the profession. This is not only for the benefit of the client but also for the benefit of those belonging to that profession. Disciplinary codes allow the profession to define a standard of conduct and ensure that individual practitioners meet this standard, by disciplining them from the professional body if they do not practice accordingly. This allows those professionals who act with a conscience to practice in the knowledge that they will not be undermined commercially by those who have fewer ethical qualms.


1 A CA in practice is deemed to be guilty of professional misconduct if he :-

♦ Allows any person to practice in his name as a chartered accountant

♦ Unless such person is also a chartered accountant in practice

♦ Is in partnership with, or

♦ Employed by himself

This clause ensures that the work of accountant will be carried out by a CA


2 A CA in practice is deemed to be guilty of professional misconduct if he :-

♦ Pays or allows or agrees to pay or allow,

♦ Directly or indirectly,

♦ Any share commission or brokerage in

♦ Fees or profits of his professional business to any person other than

1) A member of ICAI

2) Partner or Retired partner

3) Legal representative of deceased partner

4) Member of any other professional bodies

5) With such other persons having prescribed qualifications

This clause ensures that the practicing CA should get his professional work not through services of agents or third parties but due to his own competent.



1 A CA is deemed to be guilty of professional misconduct if he:-

♦ NOT being a fellow of the institute, but acts as a fellow of the institute.

2 A CA is deemed to be guilty of professional misconduct if he :-

♦ Does not supply the information called for, or

♦ Does not comply with the requirements asked for by

♦ The Institute, Council or any of its committees, director(discipline), board of discipline, disciplinary committee, quality review board or the appellate authority.

3 A CA is deemed to be guilty of professional misconduct if he :-

♦ While inviting professional work from another chartered accountant or

♦ While responding to tenders or inquiries or

♦ While advertising through a write up or anything as provided for in clause 6

♦ Gives information knowing it to be false.

Ethics is not definable, is not implementable, because it is not conscious; it involves not only our thinking, but also our feeling.

Valdemar W Setzer

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One Comment

  1. BAsavaraj says:

    Hi, Just a small question, whether a Chartered Accountant who is a fulltime partner in the partnership firm, may take consultancy income from various clients in a individual capacity.

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