The "Code of Conduct" is essentially a set of professional ethical standards regulating the relationship of Chartered Accountants with their clients, employers, employees, fellow members of the group and the public generally.
The maintenance of ethical standards is the collective concern of the Institute as well as all members of the profession. The ideal situation, of course, would be that the maintenance of ethical standards at individual member level is so self-evident that its further mention need not be made. However, the human nature being what it is, a man may often place his personal gain above service. Therefore, it is necessary to keep on reinforcing the idea of keeping up and observing the highest ethical standards repeatedly.
The Chartered Accountants Act, 1949 and the Schedules to the Act set out the acceptable forms of behaviour of the members of the profession. The Conduct of the Chartered Accountants is judged under provisions contained in the Chartered Accountants Act, 1949 and the Schedules thereto; setting out different forms of behaviour which would constitute professional or other misconduct under the Act. The Chartered Accountants Act is framed for the regulation of the profession of Chartered Accountants.
Section 22 of the Chartered Accountants Act defines and describes what constitutes `professional misconduct'. Under Section 22 of the Act, the expression `professional misconduct' shall be deemed to include any act or omission specified in any of the schedules.
However, during the last about 50 years since the Act came into force, certain conventions have been voluntarily established by the members of the profession which have enhanced the respect and confidence enjoyed by the profession. The Council of the Institute has been adhering to these principles strictly and scrupulously in order to maintain the reputation of the profession.