ICAI Proposes Major Tweeks in CA Code of Conduct: Invites Member’s Feedback
The Institute of Chartered Accountants of India (ICAI) recently issued an enclosed Exposure draft of pragmatic changes proposed to the code of conduct.
Some of the important changes proposed are summarised by CA Atul Modani in his twitter post:
1) To permit quoting or accepting audit fees based on a percentage or range of turnover
2) Permitting additional business/occupation activities, dispensing with the category of specific permission, and with reference to intimation in case of certain activities, and relaxation in entitlement to attest functions in certain cases.
3) Proposed revision in Total Fees – Fee Dependency: 2 years and 20% threshold for PIE clients; 5 years for non-PIE clients while maintaining the 40% threshold.
4) Changes “Management Consultancy and Other Services” issued by Council under Section 2(2)(iv) of the CA Act, 1949 to include services of Forensic Accounting, STOCK Research Analyst (SEBI) , Social Impact Assessment and Evaluation, Artificial Intelligence, etc.
5) Changes in the commentary to Clause (4) of Part I of the First Schedule for permission for CAs in practice to form partnerships with other professionals.
6) Amendments to the Guidelines for Practice in Corporate Form to include services such as forensic accounting, administrative services, research analysis recognized by a regulator, social impact assessment and evaluation, CSR impact, business responsibility and sustainability reporting, and artificial intelligence and permitting the development of websites, subject to requisite amendments.
7) Changes in Section 360 “Responding to Non-Compliance with Laws And Regulations” (NOCLAR) during the Course Of Audit Engagements Of Listed Entities: the criterion of ₹250 crores has been removed, making NOCLAR provisions applicable to all listed entities and material subsidiaries and inclusion of the provisions of imminent breach.
8) Changes in Council Guidelines for Advertisement, 2008 to make them more contemporary, including inclusion of “Contemporary form,” “Directories,” in the definition of “Write-up.”, removal of limit of font size and the requirement to mention membership number/FRN.
9) Exemptions to indebtedness, increasing limit of indebtedness to Rs. 5 lacs from 1 lac, covering insolvency proceedings as exemption to non-acceptance of Audit in case of pending audit fees, threshold for Chapter Appointment as Statutory auditor increased to Rs. 250 crores. etc, Change in limit of Specified number of audit assignments to 40 companies.
Pragmatic Changes proposed to Code of Conduct by ICAI- Members can give suggestions / feedback on the enclosed Exposure drafts till up to 26th November, 2025.
Some of the important changes proposed are as below:
1) To permit quoting or accepting audit fees based on a…
— Atul Modani (@atulmodani) November 7, 2025
Note: The last date for submitting the feedback is November 26, 2025.
