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Which of the following is explicitly listed as a form of 'inducement' in the ICAI Code of Ethics?
AReimbursement of travel actually incurred in audit work
BSalary paid by the employing organisation to its CFO
CPreferential treatment, rights or privileges offered to the CA
DStatutory professional fees agreed in an engagement letter
Answer & Solution
Correct answer: C. Preferential treatment, rights or privileges offered to the CA
The Code lists gifts, hospitality, entertainment, donations, appeals to friendship, employment opportunities and preferential treatment, rights or privileges as inducements. Contracted fees, reimbursements and salary are ordinary professional consideration, not inducements.
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