A newly qualified Chartered Accountant, CA Riya is handling an assignment where no specific ethical rule is prescribed for a particular unusual…
CA Intermediate · Auditing and Ethics · MTP · January 2026
A newly qualified Chartered Accountant, CA Riya is handling an assignment where no specific ethical rule is prescribed for a particular unusual transaction. She decides to evaluate the situation based on her knowledge, skills and expertise to determine the most ethical course of action, even though there is no detailed rule guiding her. Which approach is Riya following?
Suggested Answer and Working Notes:
Correct Answer: Option (B)
Principles-based approach
Topics: Ethics and Terms of Audit Engagements
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