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General Principles
Arjun (A) — Hey Bhagwan, today I was very eager to meet you.
Shrikrishna (S) —Why? You seem to be relaxed after the nightmare of 30th September.
A — Indeed, it was a nightmare. Fortunately the due date was extended by one month. But about the situation at that time, the less said the better! And what is the use of extension granted after the due date?
S — True. An eye-opener for you people. You need to be more proactive and disciplined.
A — I agree.
S — But why were you so eager to meet me?
A — I read a nice story on ethics.
S — Oh, I see. So you have also started taking the topic seriously.
A — Yes. I was earlier shaken by listening to so many stories about our Code of Ethics. But now I have woken up!
S — Tell me the story.
A — You might have heard of a very renowned surgeon – Dr. V. N. Shrikhande.
S — Of course, yes! Who would not know him? He performed a difficult surgery on the President of India.
A — Yes. An internationally acclaimed surgeon. Literally a God on the earth!
S — Not only excellent as a professional but a saintly person. What of him?
A — His book ‘Reflections of a Surgeon’ was recently published. He has narrated a beautiful experience. He performed an almost impossible, complex surgery on a patient very successfully while he was in UK.
S — Oh! Then what happened?
A — Naturally, all the family members of that patient treated him like a God. They revered him like anything.
S — Naturally!
A — Once the doctor went for his driving test. And by coincidence, the same patient’s very close relative was the officer there.
S — Then the doctor’s task would be very easy!
A — No, it is worth listening. That officer welcomed him with great respect and affection.
S — That goes without saying.
A — But intriguingly, the officer failed the doctor in the test! You know why?
S — No, Tell me.
A — Merely because the doctor did not adjust the mirror while sitting!!
S — Great Lesson! Thank you for this great story, Arjun. That is real duty consciousness. Real ethics!
A — Yes. He rightly thought that issuing a wrong licence could be fatal to somebody.
S — That is ethics. That is the real value-based behaviour; and the same holds good in your profession.
A — Yes. We sign the wrong accounts – or certificates – often knowing them to be wrong. We take things lightly.
S — One wrong balance-sheet may lead to loss of revenue to the country. And if based on such financials, if loans are given, the unit would soon become an NPA! It is a waste of public money.
A — True. Many people may suffer as a result of one NPA. If that unit is closed, its employees become jobless. Bank’s soundness is weakened.
S — Moreover, there is unproductive litigation. Public confidence is shaken. If the borrowers are large corporates, the loss is really grave. The whole society suffers.
A — Once credibility is lost, it is difficult to regain it. That is why, of late, I have become extra careful. A few of my clients in fact left me since I started asking questions.
S — Incidentally, one of your colleagues was arguing with me on the scope of your Code of Ethics. Actually he had taken a personal loan from his client.
A — But an auditor cannot be a debtor to the auditee! You yourself told me once.
S — Actually, the CA was not the auditor; but only taxconsultant.
A — Okay! Then what happened?
S — The CA defaulted in the repayment of loan. So the client, after tolerating for long, filed a complaint with ICAI.
A — But you said it was a personal loan; nothing to do with the profession. Isn’t it?
S — That’s the stand he is taking. But then, your Code covers not only professional misconduct; but also ‘other’ misconduct. It means a behavior unbecoming of a professional.
A — I agree. It may affect the credibility of the CA profession as a whole. It brings disrepute to the profession.
S — For example, if a cheque issued by a CA bounces, it may also attract a disciplinary action if there is negligence. It may include misbehavior even in social or family context.
A — So the irresponsible manner of driving a car is also unethical!
S — Of course, yes!
A — So the doctor’s story is very relevant. And we must commend the act of that officer. What would have happened in our country?
S — The doctor would have received a driving licence even without giving a test!
A — Just as a few CAs certify the balance sheets even without the books of account! This is inviting trouble for all of us. We need to mend our ways ! Om shanti !!!!!
Note:
The provisions of the Code of Ethics are equally applicable to the advisory work undertaken by us professionals. The above dialogue tries to explain the same.
The C.A. can also be charged under the Consumer Protection law.
