M/s Joshi & Joshi is a practicing Chartered Accountants firm. One of the senior partners of the firm is also associated with import/export trade and he is the sole proprietor of that business. Mr. Joshi has also taken huge amount of loan from various banks and he is found visiting more to government offices than in his own firm or to his clients. Comment on given case with reference to „Code of Ethics‟.

Auditing and Assurance Revision Questions and Answers

Answer
A professional accountant in public practice should not concurrently engage in any business, occupation or activity which impairs or might impair integrity, objectivity or independence, or the good reputation of the profession and therefore would be incompatible with the rendering of professional services. The simultaneous engagement in other business, occupation or activity unrelated to professional services, which have the effect of not allowing the professional accountant in public practice properly to conduct a professional practice in accordance with the fundamental ethical principles of the accountancy profession should be regarded as inconsistent with the practice of public accountancy.



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