pri ICAI Releases revised Part-B of Code of Ethics, 2019 ICAI Releases revised Part-B of Code of Ethics, 2019

As you are aware, ICAI Code of Ethics, 2009 was aligned with the International Ethics Standards Board for Accountants (IESBA) Code of Ethics 2005 for the first time in 2009.This edition of the Code was divided into two parts – A and B , Part-A representing provisions of IESBA Code of Ethics as suitably incorporated after modification, and Part – B representing the domestic provisions of India governing the Chartered Accountants.

 Further, Part-A of Code of Ethics was revised in Council in 2018 on the basis of IESBA Code of Ethics, 2018 edition.

 Now we are proposing revision of Part-B of Code of Ethics 2019.

 Since 2009, manifold changes have taken place from domestic view point, including changes in:-

  • Chartered Accountants Act, 1949, Chartered Accountants Regulations, 1988,
  • Council Guidelines;
  • Council decisions;
  • Clarifications of Ethical Standards Board and other committees,
  • Revised Auditing and Accounting Standards;
  • New Companies Act (2013);
  •  Revised Part-A of Code of Ethics (2019);
  • New regulatory requirements and new disciplinary cases.

On the basis of the above developments and other contemporary requirements, recommendations of Ethical Standards Board were finalized on revision of Part-B of Code of Ethics, 2009, which were considered at the 386th (adjourned) Meeting of Council held on 5th and 6th November, 2019

In terms of the decisions of Council taken at the said Meeting, the Exposure draft has been finalized, and may be assessed on the website of the Institute at

A brief summary of broad changes being brought in the Code  as compared to Part-B of existing ICAI Code of Ethics, 2009 edition is enclosed as Annexure –A herewith.

May we request you to send your inputs/suggestions/comments/feedback on the enclosed Exposure draft, at  / within 30 days, i.e latest upto 21st December, 2019.

All perspectives are invited. Your comments are valuable to us, and will be considered during finalization of the Code.

Chairman & Vice -Chairperson

Ethical Standards Board

The Institute of Chartered Accountants of India



Part-B – Broad changes in the Code

1. Code of Ethics based on IESBA Code (Part-A); and Code of Ethics based on domestic provisions (Part-B) to be separate publications (Volume-I and II respectively).

2. Changes in section 2 and 25 due to Chartered Accountants (Amendment) Act, 2012

3. Numbering of all provisions on the basis of Chapter number.

4. Changes due to revised requirements of Part-A of Code of Ethics (2019) , especially in commentary to Section 2(2), Clauses (8) of Part-I of First Schedule, and (1) of Part-I Second Schedule to Chartered Accountants Act, 1949, as also under Self-Regulatory measures.

5. Changes due to new Companies Act, 2013, especially under Clause (9) of Part-I of First schedule to The Chartered Accountants Act, 1949.

6. Revised Auditing and Accounting Standards – corresponding changes in Chapter 1 of the Code of Ethics,  Commentary under Clause (8) of Part-I of First Schedule, Clause (2) Part-I of Second Schedule , Clause (8) of Part -I of Second Schedule, Clause (3) of Part-I of Second Schedule, Clause(9) of Part-I of Second Schedule, and elsewhere.

7. Disciplinary Case laws from 2009 till 2019 with commentary to sections and clauses to two schedules being incorporated separately as “Case Laws Referencer”.

8. References of amended Chartered Accountants Regulations, 1988.

9. New clarifications and decision of Courts in commentary u/s 7.

10. New additions in Guidelines for Management Consultancy and other services.

11. New clarifications and changes in commentary to Clauses (6) and (7) of Part-I of First Schedule, based on new exemptions and prohibitions of advertisement and solicitation, including, but not limited to:-

(a) Listing on Aggregator based websites not permissible;

(b) Commentary on tenders to include Notification and further developments on tenders;

(c) Further elaboration on the purview of “Minimum Fees” in Tenders; (d)    Directory Guidelines revised.

12. Advertisement Guidelines to include Website Guidelines.

13. Affiliation with a Network registered with ICAI may be mentioned in an advertisement.

14. Passport style to be the criterion instead of passport size photograph.

15. “Social Networking Sites” included in the definition of “write-up”.

16. Networks other than those registered with ICAI not permissible.

17. For size of sign board, appropriate visibility and illumination to be additional criteria.

18. New valid proofs of delivery under Clause (8) of Part-I of First Schedule.

19. New Appendices – List  of auditing and Accounting Standards applicable of date, Guidelines for Corporate Form of Practice, CA Logo Guidelines, for Corporate Form of practice,  Notification on UDIN and Disciplinary Flow charts

20. A statutory auditor of a Company cannot be its internal auditor applicable to all entities.

21. Further elaboration of definition of Director Simplicitor.

22. Guidelines on HUF for business incorporated.

23. New Services decided under Regulation 192.

24. Revised situations of conflict of interest under Clause (4) of Part-I of Second Schedule based on new Companies Act.

25. Changes in the chapters VI and VIII of Council General Guidelines in limit of Tax audits and Company audits respectively.

26. Other situations of conflict of interest based on council decisions under Clause (4).

 27. Under commentary to Clause (9) of part-I of Second schedule, new compliances for Generally Accepted Audit Procedure.

 28. Chapter IV of Council General Guidelines, 2008  being repealed due to duplicity with definition of “relative” as appearing under Appendix.

29. Limit of indebtedness revised to Rs. 1 lakh in case not mentioned in Statute in  Chapter X of Council General Guidelines, 2008.

30. Objective of ESB be aligned as per IESBA and  Terms of Reference of ESB to include formulation of ethical standards and to review the terms of reference at every two years.

31. Online transfer of  Fees of Rs. 1000/- be allowed for filing a complaint of unjustified removal of auditors, and requirement of filing papers in hard form dispensed with.

32. For Council / Regional council members -Last highest  position held in ICAI (as an elected representative) on his visiting card , provided it is without ICAI emblem and the visiting card is of individual member only, and not of CA Firm , wherein he may be the partner (382nd (Adjourned) meeting on 15th and 16th April, 2019 )

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