Under the ICAI Code of Ethics, when complying with one fundamental principle CONFLICTS with another, the CA should:
AApply both principles partially, with no consultation required
BAlways prioritise Integrity over the other four principles
CChoose the principle that better serves the client's interest
DConsider consulting with others (within firm/employing organisation, those charged with governance, the Institute, legal counsel) — but ultimately exercise professional judgment to resolve the conflict, including (if necessary and not prohibited by law) DISASSOCIATING from the matter creating the conflict
Answer & Solution
Correct answer: D. Consider consulting with others (within firm/employing organisation, those charged with governance, the Institute, legal counsel) — but ultimately exercise professional judgment to resolve the conflict, including (if necessary and not prohibited by law) DISASSOCIATING from the matter creating the conflict
Code of Ethics — when fundamental principles conflict, consultation with others is recommended (firm partners, TCWG, Institute, legal counsel) but doesn't relieve the CA from EXERCISING PROFESSIONAL JUDGMENT to resolve it. The ultimate step (if conflict can't be resolved) is to DISASSOCIATE from the matter — unless law/regulation prohibits this. No principle has automatic precedence; context and the specific situation guide resolution.
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