Members of the Institute of Chartered Accountants of Pakistan (ICAP) deliberated on the revised 'Code of Ethics for Professional Accountants' issued by the International Ethics Standards Board for Accountants (IESBA) in a seminar at ICAP House, Clifton, organised by the Southern Regional Committee of the ICAP recently.
Speaking on the occasion, AF Ferguson and Company Partner Farrukh Rehman elucidated that the most important amendments had been made in procedures for drafting conventions, the conceptual framework approach and the independence sections that concern audit, review engagements, and assurance engagements of chartered accountants.
The IESBA had issued the revised code in July 2009. After the changes were incorporated, it was incumbent on the ICAP to amend its own code of ethics as well. The final draft of the ICAP Code of Ethics was released for members' comments in September 2011 after the South Regional and Taxation Committees had deliberated on the IESBA code. The code lists five fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour that a chartered accountant must adhere to.
The revision requires chartered accountants to comply with all the sections that use the word 'shall.' Rehman said that there were concerns initially that it would turn the revised code from a set of principles into a set of rules. However, he added, IESBA decided to approve the said provision. Chartered accountants will be required to consult with either the regulator or the relevant professional body, if complying with any provision could result in a disproportionate outcome for the client.-PR