Members in Industry
Arjun
(A) — Hey Bhagwan, today I want to ask you a very important
question. It is perplexing my mind for a long time.
Shrikrishna
— Arjun, what then prevents you from asking?
A — No, all this time, we have been discussing about the ethics to be
followed by members in practice. What
about those who are working in Industry?
S — you think they are above all the rules of ethics?
A — I feel, they are enjoying life without bothering of ethics. Only us who are slogging in practice are
constantly under fear of disciplinary action.
S — You are mistaken. Why do you
say so?
A — See all these scams –right from Harshad Mehta, Ketan Parikh, Satyam,
PNB, MCX, upto IL & FS – I have never heard any of their employees being
hooked for misconduct.
S — Achchha?
A — Yes. Only our practicing CAs
are taken to task. These corporate
executives who are the real
beneficiaries of scams are enjoying life merrily! Their pay packages are also thick. And on the top of it, there are allowances
and perks!
They
are minting money.
.
S — Arjun, grass is always greener on the other side. Have you seen their lives closely?
A — They only pretend to be busy. Whole day long they relax, do chatting
and also spend time in share market.
They start working in the evening, claim all late-sitting benefits and
show that they are under stress!
S — If that is so, why didn’t you take up such corporate job? Anyway, today let us talk only about the Code
of Ethics applicable to them.
.A — Haan! Yes, tell me.
S — See, in part II of First Schedule, they can neither share a part of
their emoluments with anyone; nor can they accept anything in part in the
payments made to the other persons engaged by the employer company.
.
A — Aah! What is so great about it? How can bribery be
tolerated? It’s a crime.
S — I agree.
A — See, how many stringent clauses apply to us – Due diligence,
Gross negligence, Contravention of laws ………………………
S — Part III and Part IV of First Schedule apply to all
members. Like, they cannot misrepresent
themselves as fellow members if they are really not FCAs or its a misconduct if
they do not supply information required by the Institute or solicit
professional work.
A — Oh! I hadn’t noticed it. What next?
S — And if they are held criminally guilty or if they bring disrepute to
the profession. All these clauses are very much applicable to them.
A — But what about those cumbersome compliances with Accounting Standards,
Guidance Notes; other directives of the Institute? They seem to be free from all those!
S — How can you say so? You as an
auditor are supposed to see whether they on behalf of the company have complied
with all those directives. That’s your
very job. You have to report those non
compliances without fear or favor. Then
they will be exposed.
A — See, company’s management is never bothered about such compliances.
They say it is auditor’s botheration.
They create such a situation where the auditor is really helpless. The last moment rush! We also don’t get enough time to
discuss
and apply our mind.
S —Then, why don’t you give an adverse report; or a disclaimer?
A — Bhagwan, that is not so easy. We can’t afford to qualify our report like
this.
S — Why? It is your duty.
A — Agreed. But where do we have so much independence?
S — To that extent, I appreciate your limitations.
A —Actually it is helplessness. ‘majboori’
The foundation of the audit profession itself becomes shaky because of this.
S — The reason is you lack unity and courage to say ‘No’
A — But tell me how further they are bound by ethics?
S — See. Again in Part II of Second Schedule, very first clause, if any
member including the one in service, contravenes any of the provisions of CA
Act or regulations or guidelines issued by the Institute, he is held guilty.
They also
cannot
divulge the secret information with any person, make any false or untrue
statement or defalcate or embezzle moneys. All these clauses apply to all the
members.
A — Yes. I agree that I was
under a mistaken belief. In short,
ethics are all-pervasive. All of us need to follow them religiously.
S — You said it! Even I
am not above ethics!
Om Shanti.
Note:
The above dialogue
explains various clauses of Code of Ethics which are applicable to members in
service.
