ICAI’s 13th Code of Ethics Edition Takes Effect: Practice Review Priorities for CAs
The Institute of Chartered Accountants of India (ICAI) has released the revised 13th edition of its Code of Ethics. The Ethical Standards Board's announcement dated 30 May 2026 states that the revised Code applies from 1 April 2026, except for one management consultancy entry that applies from an earlier date. The changes had been approved at ICAI's 447th Council meeting on 12 December 2025, as set out in ICAI's press release of 12 December 2025.
For practising chartered accountants and audit firms, the new edition affects client acceptance, independence checks, services to audit clients, handling of suspected non-compliance with laws, publicity and sustainability-assurance work.
Three volumes and what each covers
| Volume | Content |
|---|---|
| Volume I | Domestic provisions of the Chartered Accountants Act, 1949 and Regulations, Council Guidelines and decisions |
| Volume II | Converged with the IESBA Code of Ethics, 2024 edition |
| Volume III | Ethics Standards for Sustainability Assurance, including independence standards |
Volume I is the one to check for India-specific restrictions and permissions. Volume II carries the internationally converged requirements, including independence. Volume III gives sustainability-assurance engagements their own ethical and independence framework instead of leaving firms to adapt policies built for financial-statement audits.
Effective dates
- General date: the revised Code applies from 1 April 2026.
- Exception: serial number (xxxi) in the list of Management Consultancy and Other Services under section 2(2)(iv) of the Chartered Accountants Act, 1949, "Assessment and evaluation of Social Impact, CSR Impact, Business Responsibility and Sustainability Reporting, and the like", applies from 11 December 2025.
The 30 May 2026 announcement date is not the commencement date. Compliance reviews should be mapped to 1 April 2026, with the separate earlier date for the social-impact, CSR-impact and BRSR entry.
Main changes approved by the Council
Non-assurance services to audit clients
According to the December 2025 press release, provisions on non-assurance services to audit clients have been further restricted in line with the IESBA Code. An audit firm cannot accept the audit of a public interest entity (PIE) if it previously provided a non-assurance service that could create a self-review threat in relation to the financial statements.
This makes the pre-acceptance check firm-wide. Information about accounting, valuation, technology, tax and advisory work may sit with different teams or offices. Acceptance systems should capture which entity received each service, when, and whether that work could be evaluated in the proposed audit.
Practices should also revisit approval matrices for new assignments for existing audit clients, so that commercial acceptance of a service never comes before the ethics and independence assessment. Where group entities or network arrangements are involved, the review may need information from beyond the immediate engagement team.
NOCLAR extended
The provisions on Responding to Non-Compliance with Laws and Regulations (NOCLAR) arising in audit engagements now extend to all listed entities and their material subsidiaries. Firms should identify engagements newly in scope and update planning, consultation routes, documentation and escalation steps accordingly. A workable NOCLAR process also depends on timely communication within the engagement team, access to technical consultation and clear records of the facts considered and the response taken.
Advertisement and website guidelines
The Council approved amendments giving members more flexibility in write-ups about their services. Members may use push technology for services that are not exclusive to the CA profession, such as consultancy and accounting, and network firms registered with ICAI may develop and maintain their own websites. These permissions work within the conditions in the revised Code, so websites, social media posts, email campaigns and network branding should be reviewed against the exact text before promotional activity is expanded.
New management consultancy services
The list of Management Consultancy and Other Services now covers social impact assessment, artificial intelligence-related services, forensic accounting and other emerging areas. Being on the permitted list does not settle whether a service can be given to an assurance client; the independence requirements still apply to the facts of each engagement.
Sustainability assurance
Volume III brings in ethics and independence standards for sustainability assurance. Before accepting such work, firms should compare their client and relationship data with Volume III, identify the personnel and related entities in scope, and check whether other services to the same client create threats.
What practising CAs should do now
- Circulate all three volumes to partners and designated ethics personnel and record a gap analysis.
- Test client and service inventories against the PIE self-review prohibition, NOCLAR scope and Volume III.
- Flag PIEs, listed entities and material subsidiaries separately in engagement acceptance and continuance files.
- Revise acceptance forms, independence declarations, consultation protocols, website approval procedures and training material.
- Record the commencement date that applies to each affected requirement, distinguishing 1 April 2026 from 11 December 2025.
Updated on 27 September 2026: linked ICAI's 30 May 2026 announcement and the 12 December 2025 Council press release, added the 447th Council meeting reference and a volume table, and tightened the practice review steps.
