Besides formulating ethical principles for members, the Board also examines and renders advice on ethical issues referred to it. It reviews the ‘Code of Ethics’ for members from time to time, and publishes the revised editions . The other publications of the Board, namely, ‘FAQ on Ethical Issues’, ‘Guidance Note on Independence of Auditors’ and ‘Guidance Note on Revision of the Audit Report’ are also reviewed and revised from time to time. The Board promotes public awareness and confidence in the integrity, objectivity, competence and professionalism of members . It also examines and deals with the complaints of members against their unjustified removal as auditors of an entity, as per procedure evolved, and takes necessary steps to protect the interest of its members
- The Code of Ethics -2009 was released on 4th February, 2009 . The revised Code of Ethics for the first time incorporated the International Federation of Accountants (IFAC) Code of Ethics for professional accountants with variances, wherever required, to make it compatible with Indian laws.
- Advertisement Guidelines issued on 14th May,2008 for the members in practice to allow them to advertise in a restricted way through a write-up.
- Council General Guidelines, 2008 issued on 8th August, 2008 on various issues e.g. Maintenance of Books of Account, Tax Audit Assignments under I.T.Act, 1961, Specified Number of Audit Assignments etc.
- Members in practice are allowed to own agricultural land and carry out agricultural activity under general permission under Appendix (9) of the Chartered Accountants Regulations, 1988 .
- Members of the Council, the Chairman/Vice-Chairman of the Committees of the Council, the Members of the of the Regional Councils and Members of the Managing Committees of Branches may print either their residential address or office address including telephone/fax no. without mentioning the firm’s name on the back of the visiting cards.
- Management Consultancy Companies floated by Practicing Chartered Accountants can receive remuneration from an employer based on percentage of the annual CTC of the Candidate while providing services relating to recruitment or placement of such candidate as only clauses (6) & (7) of Part I of First Schedule to The Chartered Accountants Act, 1949, are applicable to such companies. Individual practicing Chartered Accountants or their firms are not permitted for the same as per the provisions of Clause (10) of part I of the First Schedule to the CA Act,1949.
- Member who is in practice can not use the designation of ‘District Governor’ in his rotary visiting card along with the word ‘Chartered Accountant (In view Section 7 of the Act and Clause (7) of Part I of the First Schedule to the CA Act,1949 ).
- It is not permissible for a Member of ICAI who is practicing as an Advocate, to use CA Logo on his professional stationary as the CA Logo is recognized as a symbol of CA Profession in India and it is to promote the brand of Profession of Chartered Accountants.
- Based on an ethical point of view the CA Director of a Company should not participate in board meeting and withdraw himself when the item relating to his client(s) is considered by the Board
- Members from industry as well as from Practice can pursue the AMFI (Association of Mutual Funds in India) Course . However, as to the question whether a member can be registered with it so as to take the role of Financial Intermediary, the Board decided that , members in Industry/ otherwise not in practice can obtain the membership by registering them with a mutual fund / Association whereas members in practice can not do so whether holding full time COP or Part time COP.
- Engagement by a member in practice , in the business of buying and selling shares amounts to be ‘any business’ within the meaning of Clause (11) of Part I of the First Schedule and hence the prior permission of the Council is required.
- It is prohibitive to undertake the assignments of Internal Audit of a client and entry of the transaction for Accounting, simultaneously being violative of the provisions of the ‘Guidance Note on Independence of Auditors’
- Concurrent audit and the assignment of Quarterly review of the same entity cannot be taken simultaneously as the concurrent audit being a kind of internal audit and the quarterly review being a kind of Statutory audit undertaken simultaneously are prohibited under the provisions of ‘Guidance Note on Independence of Auditors’.
- Publishing a book by a firm containing its history for the purpose of distributing to clients, associates, friends and well wishers and printing of the words ‘Celebrating 75 years in the Profession’ on special letterheads and envelopes of the firm will lead to solicitation of professional work, hence not permissible as per the provisions of Clause (6) and (7) of Part I of the First Schedule to the Chartered Accountants Act, 1949.
- Member is not permitted to use his letterhead containing the name and address of his firm for presenting before the public at large, as it contains a promotional element and leads to solicitation of professional work.
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