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Ethical Standards Board

Chairman, Ethical Standards Board
CA. (Dr.) Anuj Goyal

Phone: +91 9810041371
Mobile: +91 9312258364


Purpose & Objective


“The Institute of Chartered Accountants of India (ICAI) is a statutory body established under The Chartered Accountants Act, 1949 for the regulation of the profession of Chartered Accountants in India. The Council of ICAI is empowered to discharge the provisions of the Act, and regulate and maintain the standards of the profession. In pursuance of this, ICAI has established the Ethical Standards Board to function as standard setting body. The Ethical Standards Board develops and issues ethical standards and other pronouncements for chartered accountants. It works 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”.


The objective of Ethical Standards Board is to set up ethical standards for chartered accountants, converge with the International best practices on ethics, subject to local laws, thereby enhancing the quality and consistency of services provided by chartered accountants and strengthening the public confidence in the profession.

Terms of Reference

  • To examine various issues concerning Code of Ethics governing the members of the Institute.
  • To establish standards for Chartered Accountants for regulation and maintenance of status and standards of professional qualification of members of the Institute
  • To examine and advise on any ethical matters referred to the committee.
  • To review periodically and publish the revised Code of Ethics and their 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 interest of the members.
  • The Ethical Standards Board will review the terms of reference at every two years

Form of Complaint/Statement of Reasons for unjustified removal of auditor to be filed before the Ethical Standards Board.


  • CA. (Dr.) Anuj Goyal, Chairman
  • CA. Mangesh Pandurang Kinare, Vice-Chairman
  • CA. Ranjeet Kumar Agarwal, President (Ex-officio)
  • CA. Charanjot Singh Nanda, Vice-President (Ex-officio)
Read More....

Knowledge Sharing

Significant Achievements/ Initiatives of Ethical Standards Board 2022-23 and 2023-24
  • Ethical Standards Board issued Booklet on important decisions of the Ethical Standards Board/Council. The Booklet contains selected ESB decisions and Council decisions on ethical issues, and applicable provisions and reasoning /justification on the said decisions. The Booklet is available under the What’s New segment.
  • Three provisions contained in Volume-I of Code of Ethics, 2019, which were deferred from 01.07.2020 to 30.09.2022, have been made applicable from 1st October 2022 with certain amendments. These provisions are:
    • a. Responding to Non-Compliance with Laws and Regulations. (Sections 260 and 360)
    • b. Fees-Relative Size (Paragraphs 410.3 to R410.6)
    • c. Tax Services to the Audit Clients (Subsection 604)
Recent Decisions of Ethical Standards Board
1. Statutory auditor of an entity is not permitted to engage in assignment of compilation engagement, of that entity as per SRS 4410.
2. It is permissible for members in practice to engage in the services assessment/performance audit of the centres of skill development council of Government of India as these are permissible under Management Consultancy and other services issued under section 2(2)(iv) of Chartered Accountants Act, 1949.
3. Members in practice are allowed to take license/registration of investment advisors from SEBI. However, members are not allowed to engage in services of broking, underwriting, portfolio management and cannot take agency of mutual funds etc. The statutory auditor cannot provide investment counselling services to the audit clients as the same is not permissible in terms of the provisions of Companies Act, 2013.
4. It is permissible for a member in practice to accept the assignment of Mystery Audit.
5. It is permitted for a member in practice to mention position as promoter/Director on the portal of a Company. However, the member cannot mention his professional attainments and the name of the firm with which he is associated. There should be no violation of clause (6) and Clause (7) of Part-I of First Schedule to the Chartered Accountants Act, 1949 in doing so.
6. It is permissible for a member in practice to become professional director in the Board of Management of a Co-operative Bank.
7. It is permissible for a member to set up practice in IFSC/GIFT city.
8. It is permissible for a member to render professional services to IFSC units from offices outside IFSC.
9. A firm is not permitted to publish its vision or mission statement on letter head, visiting card or stationery etc. The vision and mission statement may be printed on the firm profile and may be provided in response to a specific request.
10. It is not permissible for a member/ firm being the statutory Auditor of a Bank to accept the assignment of ASM of a customer of the same Bank simultaneously. He can accept either of the Assignments at one time.
11. A member in practice cannot be appointed as an Internal Auditor and Procurement officer simultaneously in an organization.
12. It is permissible for members in practice to charge fees on a percentage of utilization amount of an educational Institute for certifying the amount (utilization) spent by an educational Institute out of grant.
13. It is not permissible for a member in practice to accept the appointment of statutory audit of the society wherein immediate family member i.e., spouse or dependent, of member hold honorary position of one of the managing committee of the institutes governed by the society.
14. There is no conflict of interest in a Chartered Accountant, who is a member of a Trust, being the auditor of the said trust. It is subject to the exception where a particular statute governing a Trust prescribes prohibition on the member of the Trust to be its Auditor or otherwise where there is conflict of interest as per the provisions of Code of Ethics.
15. It is not permissible for a member to use Messaging Applications to send messages to make people aware about his practice, and mention the services provided therein.
16. It is permissible for a practicing Chartered Accountant holding Certificate of Practice to become a member of the 'Board of Management' in Primary (Urban) Co-operative Banks.
The Ethical Standards Board noted that the position of a member of 'Board of Management' in Primary (Urban) Co-operative banks (UCBs) and the role attached to that position is similar to that of a Director-Simiplicitor; where there is no involvement of a member in the day-to-day functioning/operations and not signatory etc. and only sitting fees for the services rendered are provided.
17. Member in practice cannot act as Trademark or Patent Attorney. However, Professional advice in relation to Intellectual Property Rights (IPR) is a routine professional work for a Chartered Accountants in practice and same is permissible under the provisions of the Chartered Accountants Act, 1949.
18. There is no prohibition for internal auditor of a company to acquire/purchase shares of the said Company.
19. A CA Firm may register itself on Udyog Aadhar, a web portal of Ministry Micro, Small and Medium Enterprises.
20. 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.
21. 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.
1. FAQs on Advertisement and Solicitation.
2. Engaging in Derivatives' transactions by members in practice (FAQs)
3. FAQs on Communication and changes in Professional Appointments
4. Clarification on Statutory Auditor of a Company giving feedback to Credit Rating Agencies about Auditee Client
5. FAQs on Books, Articles and Presentations by Members in Practice
6. Clarification on Fees from a Single Client
7. Communication with the Retiring Auditor through E-mail (FAQs on Communication)
8. Advisory on Mentioning Fees in Advertisements issued by Members
9. FAQs relating to professional Ethics of members pertaining to Bank Assignments
10. Announcement on Internal Auditor not to undertake GST Audit simultaneously (28.9.2018)
11. FAQs on Ethical Issues relating to GST
12. Announcement on advertising by members in practice engaged in coaching/ teaching institute (18.5.2017)
13. Announcement on KYC Norms (applicable w.e.f 1/1/2017)
14. Announcement on ICAI Code of Conduct for elected, nominated and co-opted representatives (Applicable w.e.f 1.1.2017)
15. Announcement on use of designation(s) other than the designation of "Chartered Accountant". (Issued: February, 2015)
16. Announcement on prohibition to undertake the assignment of audit and accounting work together for the same entity.(Issued: May, 2014)
17. Announcement on Ranking of CA Firms.(Issued : March, 2014)
18. Announcements - Amendment in Council General Guidelines , 2008 (Issued : June, 2011)
1. Consent for appointment not to constitute acceptance of Audit.
2. Issuance of Advisory on use of designation "Chartered Accountant" or prefix "CA" by members while expressing views on professional/non-professional matters publicly including on social media.
3. Clarification with regard to Chartered Accountants in Practice/Firms of Chartered Accountants registering themselves on GeM (Government e-marketplace) Portal
4. Continuing Audit in case of pending Fees of earlier year(s)
5. Clarification on a member in practice being a Karta of a HUF making investment.
6. Clarifications on some commonly asked queries pertaining to elected representatives of ICAI and the general members of ICAI
7. Clarification on Concurrent Auditor undertaking the assignment of Quarterly Review.
8. Clarification on Tax Audit Assignments
9. Clarification on acting as recovery consultant in Banking Sector
10. Clarification on Sharing of Fees with Government
11. Clarification regarding (1) Listing with bodies creating data-base for independent directors of Chartered Accountants and (2) Acting as E-Intermediary.
12. Clarification on Chartered Accountants acting as Direct Selling Agent (DSA)- Ethical issues involved.
13. Clarification regarding transfer of Goodwill of Chartered Accountant Firms
14. Clarification on whether the Auditor of a Subsidiary Company can be a Director of its Holding Company.
15. Clarification on the Appointment of an auditor in case of indebtedness.
1. FAQ on Ethical Issues, 2021
2. Code of Ethics, 2019 Volume - I   (Announcement dt. 29.09.2022) & (Earlier Announcements)
3. Code of Ethics, 2020 Volume-II (Applicable w.e.f 1.7.2020)
4. Code of Ethics, 2020 Volume - III
5. Code of Ethics, 2009
Guidelines/ Features
1. Corporate Form of Practice Guidelines
2. Council Guidelines for Conversion of CA Firms into LLP
3. Advertisement Guidelines including CA/CA Firm website guidelines. (updated till February, 2020)
4. COUNCIL GENERAL GUIDELINES, 2008 (updated till February,2020)
5. Guidelines of the Council in the context of use of designation etc. and manner of Printing of Letter-heads and visiting cards.
6. Revised Resolution passed by the Council under Regulation 190A (effective from 9th August, 2008)
7. Know Your Ethics
8. CA Logo Guidelines

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