13th August,2013



Dear Member,

Greetings from Ethical Standards Board !!

Ethical Standards Board of ICAI which engaged in bringing our awareness of the provisions of Code of Ethics among members and devise ways to acquaint the members belonging to all areas of the country, including the remote areas. The Board is pursuing programmes , seminars, workshops, symposia etc. on various ethical issues of interest to the members, across the Country. The maintenance of ethical standards is the collective concern of the Institute as well as all members of the profession.

Advertisement Guidelines

Under Clause-6

Clause 6 of Part-I of First Schedule to the Chartered Accountants Act-1949 provides various forms of soliciting work which the Council has prohibited. Ethical Standard Board is the process of revising Advertisement Guidelines as per the current scenario. In this regard all the members are requested to give their suggestions for revision of Advertisement Guidelines. Your Valuable suggestions will play a vital role in developing New Advertisement Guidelines. For the purpose of brevity, following areas are indentified where you can give suggestion:

a)   Advertisement and Notes in the Press

b)   Applications for Empanelment for allotment of audit and other professional work

c)   Publication of Name or Firm Name by Chartered Accountants in the Telephone or other Directories published by Telephone Authorities or Private Bodies

d)   Responding to Tenders, Advertisement and Circulars

e)   Publication of Book or Articles

f)    Issue of greeting cards or invitations

g)   Soliciting professional work by making roving enquiries

h)   Seeking work from professional colleagues

i)    Scope of representation which an auditor is entitled to make under Section 225(3) of the Companies Act,1956

j)    Acceptance of original professional work by a member emanating from the client introduced to him by another member

k)   Giving public interviews

l)    Members and/or firms who publish advertisements under Box numbers

m) Making presence on Facebook, Google+, linkedin, twitter or any other social networking site.

Under Clause-7

Clause-7 prohibits members in practice in advertising his professional attainments or services, or uses any designation or expressions other than chartered accountant on professional documents, visiting cards, letter heads or sign boards, unless it be a degree of a University established by law in India or recognized by Central Government or a title indicating membership of the Institute of Chartered Accountants of India or of any other institution that has been recognized by the Central Government or may be recognized by the Council.

Write-up: However according to proviso to Clause-7 members in practice are permitted to advertise their professional services through Write-up and in this regard in the year 2008 Council had approved “Guidelines For Advertisement” in which members are permitted to Advertise their professional service through Write-up which must be presented in such a manner as to maintain the profession’s good reputation, dignity and its ability to serve the public interest. Following areas has been identified where you can give suggestions whether it should be allowed or not:

1)   Allowability of Photographs other than passport size

2)   Rates chart

3)   Firm Logo

4)   Names of Client

5)   Sector specific clients for example Pharma sector, IT sector etc.

6)   Achievements/award or any other position held

7)   Any other addition/deletion you would like suggest.

Other Issues: Clause -7 deals with various ethical issues related to advertisement. Following area has been indentified where you can give suggestions:

1)   Use of designation other than Chartered Accountant if he is Cost Accountant, Company Secretary etc.

2)   Use of Initials ‘CPA’ on Visiting Cards.

3)   Year of establishment on letter head, other professional documents and Website.

4)   Use of Designation such as ‘Member of Parliament’, Municipal Councilor’ or any other functionary in addition to Chartered Accountant.

5)   Use of Designation ‘Chartered Accountant’, and ‘Advocate’ simultaneously.

6)   Publication of photographs and brief particulars of members in magazines.

7)   Use of designation Chartered Accountant on articles or letters to the press on subjects connected to profession

8)   Size of the sign board

9)   Inclusion of firm name on name board at residence

10)      Use of designation/professional attainment on prospectus or public announcements or other public communications issued by companies in which member is a director.

11)     Use of firm logo.

Website Guidelines

Under Clause-6

In the year 2001 Council approved the detailed guidelines for posting the particulars on Website by Chartered Accountant(s) in practice and firm(s) of Chartered Accountants in practice and subsequently these guidelines were revised in the year 2004. Now It is proposed to amend Website Guidelines in view of the developments taken place since then. As such you are requested to give your suggestions or feedback on the issue. Members can give their comments on following areas:

a)   Mode of running website (Push or Pull mode)

b)   Photographs on Website

c)   ICAI logo on Website

d)   Firm logo on Website

e)   Background themes of website

f)    Facebook, Twitter or Linkedin link on Website

g)   Vetting of website

h)   List of Type of Clients on Website ( Pharma sector, IT Sector, Automobile Sector etc.)

You are requested to provide your valuable suggestions/feedback at esb

@icai.org or [email protected]

With kind regards,

Yours truly,

CA Nihar Niranjan Jambusaria


Ethical Standards Board,

The Institute of Chartered Accountants of India

Source- ICAI


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