CONTENTS

CONTENTS

CA
PAKISTAN
Signature Qualification
that Empowers to Lead
Introduction
Professional values, ethics, and attitudes
01
02
Fundamental principles of professional ethics 02
Responsibility towards society and environment 02
Learning outcome 03
Required proficiency 04
Methodology 04
Structure of the course 04
Part I Understanding ethics and human behaviors 06
Part II Understanding models of ethical decision making 08
Part III Reflective activities 10
 INTRODUCTION
INTRODUCTION
The purpose of this course is to
support the candidates aspiring to

PROFESSIONAL VALUES, become members of the Institute to

equip themselves with the
ETHICS AND ATTITUDES appropriate professional values, ethics
and attitudes to function as chartered
Know-Practice-Reflect
accountants.

Learning and development continue

throughout the career of a member.
Therefore, professional values, ethics,
and attitudes achieved during the
phase of professional development as
candidate of CA Pakistan are also
relevant to continuing professional
development. This course recognizes
that careers of members change, and
they gain exposure to a wider range of
ethical issues. This change and
exposure requires continuing
institutional support in terms of
refreshing knowledge and building
appropriate ethical behavior.

01
Know-Practice-Reflect PROFESSIONAL VALUES, ETHICS AND ATTITUDES THE INSTITUTE OF CHARTERED ACCOUNTANTS OF PAKISTAN
 PROFESSIONAL VALUES, ETHICS, FUNDAMENTAL PRINCIPLES OF
AND ATTITUDES PROFESSIONAL ETHICS
Professional values, ethics, and attitudes include a commitment to:
The five fundamental principles as specified in the Code of
Ethics for Chartered Accountants are as follows:
a) technical competence and professional skills
a) Integrity
b) ethical behavior (e.g., independence, objectivity, confidentiality, and
b) Objectivity
integrity)
c) Professional competence and due care
c) professional manner (e.g., due care, timeliness, courteousness, respect,
d) Confidentiality
responsibility, and reliability)
e) Professional behavior
d) pursuit of excellence (e.g., commitment to continual improvement and
lifelong learning)
e) social responsibility (e.g., awareness and consideration of the public
interest) RESPONSIBILITY
The above commitments stem from (a) five fundamental principles of TOWARDS SOCIETY
professional ethics and (b) a universal responsibility towards society and the
environment. AND ENVIRONMENT
Chartered accountants, as important
part of an organization’s leadership,
are responsible for sustainable
development, which is much beyond
creating value for shareholders. As
defined in the Brundtland Report
“Sustainable development is a
development that meets the needs of
current generations without
compromising the ability of future
generations to meet their own
needs.” This concept of development
requires from chartered accountants
to be aware of the impacts of their
decisions and actions on other
stakeholders – society and

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PROFESSIONAL VALUES, ETHICS AND ATTITUDES Know-Practice-Reflect
 LEARNING OUTCOME
Learning outcomes specified in this course are fully aligned with the
requirements of International Education Standards issued by IAESB
of IFAC.
After completing the course the participants should be able to:
Know
a) explain the nature of ethics
b) explain the advantages and disadvantages of rules-based and
principles-based approaches to ethics
c) explain the role of ethics in relation to business and good
governance
d) explain the role of ethics within the profession and in relation to
the concept of social responsibility
e) explain the different models of ethical decision making
Practice
a) apply the fundamental ethical principles of integrity, objectivity,
professional competence and due care, confidentiality, and
professional behavior to ethical dilemmas and determine an
appropriate resolution
b) apply the relevant ethical requirements to professional behavior
and compliance with standards
c) analyze the interrelationship of ethics and law, including the
relationship between laws, regulations, and the public interest
d) analyze the consequences of unethical behavior to the
individual, to the profession, and to society at large
Reflect
a) exercise professional judgment
b) act in an ethical manner that is in the public interest

LEARNING OUTCOME
03
Know-Practice-Reflect PROFESSIONAL VALUES, ETHICS AND ATTITUDES THE INSTITUTE OF CHARTERED ACCOUNTANTS OF PAKISTAN
 REQUIRED PROFICIENCY
The proficiency aimed at in this course for the purposes of qualifying as
chartered accountant shall be of intermediate level. Learning outcomes at
the intermediate level relate to work situations that are characterized by
moderate levels of uncertainty, complexity, and ambiguity.
Members, progressing to higher professional roles, may endeavor to achieve
advanced proficiency from advanced training and courses offered by
universities and management trainers.

METHODOLOGY
This course achieves its objectives by:
a) providing knowledge and comprehension through learning support
material followed by assessment
b) inculcating application and analytical skills through scenario-based
examples and assessments
c) developing competence to form firm opinion and make professional
judgment through reflective activities followed by an assessment of
behavioral style

REFERENCE BOOK
STRUCTURE of the course
Code of Ethics for Chartered Accountants 2019 Part I Understanding ethics and human behaviors
Part II Understanding models of ethical decision making
ADDITIONAL READINGS Part III Reflective Activities
1. Business & Professional Ethics for Directors, Executives and Accountants
by Leonard J. Brooks & Paul Dunn, 6th Edition
2. Managing Business Ethics by Linda K. Trevino and Katherine A. Nelson

04
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 Part I Understanding ethics and human behaviors

This part provides core knowledge that is required as a foundation for ethical

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decision making - the ultimate objective of this course.

Contents
This phase is divided into two sub-parts
(a) General Knowledge about Ethics; and C
(b) Knowledge about the Code of Ethics for Chartered Accountants

Assessment of Part I
(Online without invigilation)
a) The participant will encounter questions randomly picked by the system
from a question bank.
b) Part I (a) General Knowledge about Ethics
• It contains 20 Multiple Response Questions (MRQs) and does not have
an assessment.
c) Part I (b) Knowledge about the Code of Ethics for Chartered Accountants
• It contains 25 Multiple Response Questions (MRQs); each followed by 4
options.
• Minimum passing percentage to progress to Part II is 70%.

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• There will be no negative marking
• Result will be shown in aggregate
• There is no time limit for completing the assessment
• Participants will not be informed about incorrect answers C
* A Multiple Response Question requires the respondent to select one or more than one option as the correct answer
i.e. there can be one or multiple number of right answers for the given question.

07
PART I
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 Part II Understanding models of ethical decision making

Chartered accountants sometimes face serious challenges in adhering to There are a number of ethical decision making models developed by scholars
professional values, ethics, and attitudes. These challenges are classified as: and institutions. However, in order to provide in-depth understanding of
ethical decision making, the Institute has selected only two such models,
a) Ethical dilemmas b) Ethical threats
which are as follows:

Ethical dilemmas a) Tucker’s 5-question Model – Presented by Graham Tucker

b) American Accounting Association Model
Chartered accountants generally encounter situations that are simply ‘right’
or ‘wrong’. However, there may be situations where two or more ‘rights’ are in This part and its assessment will focus on understanding and analysis of
conflict. In addition to this, there could be situations where one has a ethical dilemmas and threats, and application of the selected models. The

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compulsion to take one unpleasant decision out of two or more. Such participants in this part would not be required to make judgments and
situations are termed as ethical dilemmas. decisions.

Ethical threats Assessment of Part II

There may be situations that could threaten compliance with the (Online without invigilation)
fundamental principles of professional ethics and commitment to social a) The participant will encounter a set of scenarios randomly picked by the
responsibility. Such threats may be classified in the following five categories: system from a question bank each followed by 4 options.
a) Self-interest threats b) Self-review threats b) These will be Multiple Response Questions (MRQs).
c) Advocacy threats d) Familiarity threats c) The total marks for this part is 100.
e) Intimidation threats

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d) Minimum passing percentage to progress to Part III is 70%.

Managing ethical conduct

e) There will be no negative marking.
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This part of the course (whilst recognizes that changing someone’s behavior g) Participants will not be informed about the incorrect answers.
is difficult) aims at influencing behavior through well-researched tools of h) There is no time limit for completing the assessment.
ethical decision making. In other words, this part works on the belief that one
can manage his or her ethical conduct through learning and experience.

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THE INSTITUTE OF CHARTERED ACCOUNTANTS OF PAKISTAN PROFESSIONAL VALUES, ETHICS AND ATTITUDES Know-Practice-Reflect
 Part III Reflective Activities

Reflective activity is defined by IAESB as “the iterative process by which

professional accountants, at all stages of their career, continue to develop Assessment of Part III
their professional competence by reviewing their experiences (real or (Online without invigilation)
simulated) with a view to improving their future actions.” a) The participant will encounter a set of 7 scenarios randomly picked by the
This part of the course provides an opportunity to members and candidates system from a scenario bank each followed by some statements.
aspiring to become members to experience their professional behavior and b) Participant will be required to select one of the three decisions presented
attitude through simulations. against each scenario.
c) A student attempting this part to fulfill the requirement of regulation
This part contains a number of simulations developed in a way to pose 4(10) of the Directive 1.01-Education Scheme 2013, will be required to
different ethical dilemmas and threats. Participants’ judgment and decisions pass part I and II before attempting this part. All other participants are
against the given situations are the reflection of their behavior and encouraged to complete parts I and II before attempting this part.
preferences. This part believes that an individual learns from experience However, they may attempt this part without passing any other part.
using ethical sense, that is, a natural ability to see what is right.
The system generated assessment of behavioral style that comes out after
submission of responses of the participant is an indicative assessment and in
order to reach to any meaningful conclusion participant is required to apply
own judgment and also consult with peers, seniors and mentors.

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Know-Practice-Reflect PROFESSIONAL VALUES, ETHICS AND ATTITUDES THE INSTITUTE OF CHARTERED ACCOUNTANTS OF PAKISTAN