Mission "To work towards evolving a dynamic and contemporary Code of Ethics and ethical behaviour for members while retaining the long cherished ideals of `excellence, independence, integrity' as also to protect the dignity and interests of the members".
Terms of Reference
To examine various issues concerning Code of Ethics governing the members of the Institute.
To formulate and establish ethical standards for the profession.
To examine and advise on any ethical matters referred to the Board.
To review periodically and publish the revised Code of Ethics and other publications relating to ethics.
To promote public awareness and confidence in the integrity, objectivity, competence and professionalism of members and to co-ordinate with other Committees.
To examine and deal with the complaints of members against their unjustified removal as auditors of any entity as per procedure evolved and to take necessary steps to protect the interests of the members.
CA. Nihar Niranjan Jambusaria, Vice-President (Ex-officio)
CA. Jay Chhaira
CA. Prafulla Premsukh Chhajed
CA. Tarun Jamnadas Ghia
CA. Aniket Sunil Talati
CA. Babu Abraham Kallivayalil
CA. G Sekar
CA. M P Vijay Kumar
CA. Ranjeet Kumar Agarwal
CA. Shriniwas Yeshwant Joshi
CA. Hans Raj Chugh
CA. Pramod Jain
CA. (Dr.) Sanjeev Kumar Singhal
CA. Charanjot Singh Nanda
CA. Dheeraj Kumar Khandelwal
Adv. Vijay Kumar Jhalani
Mrs. Ritika Bhatia
Shri Sunil Kanoria
CA. Sanjiv Kumar Chaudhary
CA. Minesh jain
CA. Pankaj Tyagi
CA. B.S. Yadav
CA. Shrikumar Banerjee
CA. Sunil Talati
CA. Rajiv Saldi
CA. Maitreyee Roy
Secretary to the Committee: Mr. Ashish Swaroop Bhatnagar
In terms of decision of the Council, the revised Code of Ethics, which was to be applicable w.e.f 1.4.2020, will be applicable w.e.f 1.7.2020. The existing Code of Ethics, 2009 will remain applicable till then.
Significant Action/Initiatives of Ethical Standards in 2018-19 and 2019-20
ICAI Code of Ethics, 2019 based on IESBA Code of Ethics, 2018 issued at the annual function of the Institute on 4th February, 2019. It will come in to effect from 1st July, 2020. Till then, the existing edition i.e. ICAI Code of Ethics, 2009 will remain applicable. (to be made 1st July, 2020)
For the purpose of making members aware on the provisions on revised Code of Ethics and making pool of trained faculty for the same, Faculty Development Programmes of Ethical Standards Board were planned in all regions during the Council year 2019 -20.Accordingly, the Faculty Development Programmes of Code of Ethics were organized at New Delhi, Kolkata, Mumbai, Chennai and Indore. The sessions on revised Code of Ethics and interactive sessions of members were held at the said Faculty development Programme.
The revised edition of "Frequently Asked Questions and Answers on ethical issues", publication of Ethical standards Board, was released on the CA Day i.e 1st July, 2018.
Recent Decisions of Ethical Standards Board
A CA Firm may register itself on Udyog Aadhar, a web portal of Ministry Micro, Small and Medium Enterprises.
There is no prohibition for internal auditor of a company to acquire/purchase shares of the said Company.
It is not permissible for a member to use WhatsApp to send messages to make people aware about his practice, and mention the services provided therein.
A Chartered Accountant in practice being Director Simplicitor in a Company cannot sign ROC Forms of the Company as it is a direct conflict of role.
A Chartered Accountant in practice can act as Authorized Representative of a Foreign Company, provided he is not the auditor of the said Company.
It is permissible for two or more Chartered Accountants in practice collectively to have joint training session for their clients on GST, and share the fees collected from the clients thereof.
A chartered accountant in practice can provide services through kiosk only if the services provided are professional activities of a practicing chartered accountant, permitted under the Act.
A Chartered Accountant in service is allowed to take e-return registration if it does not conflict with employment obligation. However, he cannot certify the return.
In case where Chartered Accountant in practice is a non-executive director in a company, he or a Firm in which he is a partner, should not accept the appointment as a statutory auditor of a Company which is a joint venture of the original Company, as it would impact independence.
A Chartered Accountant in practice may be an equity research adviser, but he cannot publish retail report, as it would amount to other business or occupation.
A Chartered Accountant, who is a member of a Trust, cannot be the auditor of the said trust.
A Chartered Accountant in practice may engage himself as Registration Authority (RA) for obtaining digital signatures for clients.
A Chartered accountant can hold the credit card of a bank when he is also the auditor of the bank, provided the outstanding balance on the said card does not exceed Rs 10000 beyond the prescribed credit period limit on credit card given to him.
A Chartered Accountant in practice can act as mediator in Court, since acting as a “mediator” would be deemed to be covered within the meaning of “arbitrator’; which is inter-alia permitted to members in practice as per Regulation 191 of the Chartered Accountants Regulations, 1988.
A Chartered Accountant in practice is not permitted to accept audit assignment of a bank in case he has taken loan against a Fixed Deposit held by him in that bank.
The Ethical Standards Board in 2013 generally apply the stipulations contained in the then amended Rule 11U of Income Tax generally, wherein statutory auditor /tax auditor cannot be the valuer of unquoted equity shares of the same entity.
The Board has at its recent Meeting (January, 2017) has reviewed the above, and decided that where law prohibits for instance in the Income Tax Act and the rules framed thereunder, such prohibition on statutory auditor/tax auditor to be the valuer will continue, but where there is no specific restriction under any law, the said eventuality will be permissible, subject to compliance with the provisions, as contained in the Code of Ethics relating to independence.
The Ethical Standards Board had in 2011 decided that it is not permissible for a member who has been Director of a Company, upon resignation from the Company to be appointed as an auditor of the said Company, and the cooling period for the same may be 2 years.
The Board has at its recent Meeting (January, 2017) has reviewed the above, and noted that the Section 141 of Companies Act, 2013 on disqualification of auditors does not mention such prohibition; though threats pertaining to the said eventuality have been mentioned in Code of Ethics.
Further, the Board was of the view that a member may take decision in such situation based on the provisions of Companies Act, 2013 and provisions of Code of Ethics.
A chartered accountant in practice cannot become Financial Advisors and receive fees/commission from Financial Institutions such as Mutual Funds, Insurance Companies, NBFCs etc.
A chartered accountant cannot exercise lien over the client documents/records for non-payment of his fees.
It is not permissible for CA Firm to print its vision and values behind the visiting cards, as it would result in solicitation and therefore would be violative of the provisions of Clause (6) of Part-I of First Schedule to the Chartered Accountants Act, 1949.
It is not permissible for chartered accountants in practice to take agencies of UTI, GIC or NSDL.
It is permissible for a member in practice to be a settlor of a trust.
A member in practice cannot hold Customs Brokers Licence under section 146 of the Customs Act, 1962 read with Customs Brokers Licensing Regulations, 2013 in terms of the provisions of Code of Ethics.
A Chartered accountant in service may appear as tax representative before tax authorities on behalf of his employer, but not on behalf of other employees of the employer.
A chartered accountant who is the statutory auditor of a bank cannot for the same financial year accept stock audit of the same branch of the bank or any of the branches of the same bank or sister concern of the bank, for the same financial year.
A CA Firm which has been appointed as the internal auditor of a PF Trust by a Government Company cannot be appointed as its Statutory Auditor.
A concurrent auditor of a bank ‘X’ cannot be appointed as statutory auditor of bank ‘Y’, which is sponsored by ‘X’.
A CA/CA Firm can act as the internal auditor of a company & statutory auditor of its employees PF Fund under the new Companies Act (2013).
The Ethical Standards Board while noting that there is requirement for a Director u/s 149(3) of the Companies Act, 2013 to reside in India for a minimum period of 182 days in the previous calendar year, decided that such a Director would be within the scope of Director Simplicitor (which is generally permitted as per ICAI norms) , if he is non –executive director, required in the Board Meetings only , and not paid any remuneration except for attending such Board Meetings.
Contact us The Secretary, Ethical Standards Board, The Institute Of Chartered Accountants Of India A-29,Sector-62, ICAI Bhawan, Noida (U.P) Phone: 0120-3876857,Fax: 0120-3045940 Email us at: email@example.com, firstname.lastname@example.org
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