The revised Code of Ethics (13th edition)- Volume-I, II & III is applicable with effect from April 01, 2026 except for the s.no. (xxxi)

ICAI Code of Ethics (13th Edition) – Volume I (Domestic Provisions) – Detailed Key Highlights

The 13th Edition of ICAI Code of Ethics Volume-I is applicable from 1 April 2026. It contains domestic provisions under the Chartered Accountants Act, 1949, Chartered Accountants Regulations, Council Guidelines, Notifications and Decisions.

1. Major Liberalization in Advertisement Rules

One of the biggest changes is the relaxation of advertising restrictions.

Members/Firms can now:

• Use more detailed professional profiles.
• Publish broader information regarding services.
• Use modern digital marketing practices.
• Display expertise, industry specialization and professional achievements within prescribed limits.
• Use expanded "write-up" provisions.
• Have greater flexibility in website content.

Practical Impact

CA firms can now compete more effectively with consulting firms, law firms and multinational professional networks.

2. Website Guidelines Relaxed

New permissions include:

• Promotion of non-exclusive professional services through websites.
• Use of "Push Technology" for:
• Consultancy Services
• Accounting Services
• Advisory Services
• Business Support Services

Earlier restrictions on proactive dissemination of such services have been relaxed.

Example

Email newsletters, service alerts, GST updates, tax updates and knowledge updates can be circulated more freely within prescribed ethical boundaries.

3. International Networking Opportunities

ICAI has created a framework enabling Indian CA firms to collaborate with international networks.

Benefits include:

• Access to global expertise.
• Shared technology.
• International referrals.
• Cross-border assignments.
• Enhanced brand visibility.

4. Expanded Scope of Management Consultancy Services (MCS)

A significant addition has been made in the list of permissible services under Section 2(2)(iv).

New recognized services include:

• Social Impact Assessment
• CSR Impact Assessment
• Business Responsibility Reporting
• Sustainability Reporting
• ESG Reporting
• Sustainability Evaluation Services

This provision became effective from 11 December 2025 itself.

Opportunity for Practicing CAs

Large opportunities exist in:

• Corporate ESG reporting
• BRSR assignments
• CSR impact studies
• NGO evaluations
• Sustainability assurance support

5. Use of Modern Communication Tools

The revised Code recognizes current professional practices.

Members can:

• Conduct webinars.
• Host educational events.
• Publish professional content digitally.
• Use technology-driven client communication mechanisms.

Subject to dignity and professional conduct requirements.

6. Greater Flexibility in Professional Presentation

The revised Code permits more informative disclosure relating to:

• Areas of specialization.
• Professional qualifications.
• Firm profile.
• Service offerings.
• Sector expertise.

However:

• Comparative advertisements remain prohibited.
• Misleading claims remain prohibited.
• Solicitation remains restricted.

7. Ethical Restrictions Continue

Despite liberalization, the following remain prohibited:

A member cannot:

• Claim superiority over another CA.
• Guarantee results.
• Use misleading advertisements.
• Make false statements.
• Indulge in fee undercutting contrary to professional dignity.
• Use testimonials in a deceptive manner.
• Solicit professional work improperly.

These continue to attract disciplinary action.

8. Changes Relevant to CA Firms

Firms may now prominently showcase:

• Industry expertise.
• Sector specialization.
• Team strength.
• Professional credentials.
• Service portfolios.
• Knowledge resources.

This is particularly beneficial for firms engaged in:

• Statutory Audit
• Bank Audit
• PSU Audit
• GST Advisory
• Direct Tax Practice
• Forensic Audit
• Insolvency Practice
• ESG & Sustainability Services.

9. Disciplinary and Professional Misconduct Provisions Retained

Volume-I continues to contain:

First Schedule Matters

• Professional misconduct in practice.
• Professional misconduct generally.
• Other misconduct.

Second Schedule Matters

• Gross negligence.
• Failure to disclose material facts.
• Independence violations.
• Professional misconduct requiring Council action.

The disciplinary framework under the Chartered Accountants Act remains unchanged.

10. Most Important Changes for Practicing CA Firms

Key Takeaway for Practitioners

For firms like M/s Vinay Naveen & Co., the most commercially significant changes are:

1. Liberalized advertisement framework.
2. Expanded website and digital marketing permissions.
3. Recognition of ESG, BRSR and Sustainability assignments.
4. Social Impact and CSR Impact Assessment opportunities.
5. Greater freedom in showcasing expertise and professional capabilities.
6. Enhanced global networking opportunities for Indian CA firms.

Official Volume-I PDF:

https://resource.cdn.icai.org/92475coe2026v1.pdf



ICAI Code of Ethics (13th Edition) – Volume I (Domestic Provisions) – Detailed Key Highlights

The 13th Edition of ICAI Code of Ethics Volume-I is applicable from 1 April 2026. It contains domestic provisions under the Chartered Accountants Act, 1949, Chartered Accountants Regulations, Council Guidelines, Notifications and Decisions.

1. Major Liberalization in Advertisement Rules

One of the biggest changes is the relaxation of advertising restrictions.

Members/Firms can now:

• Use more detailed professional profiles.
• Publish broader information regarding services.
• Use modern digital marketing practices.
• Display expertise, industry specialization and professional achievements within prescribed limits.
• Use expanded "write-up" provisions.
• Have greater flexibility in website content.

Practical Impact

CA firms can now compete more effectively with consulting firms, law firms and multinational professional networks.

2. Website Guidelines Relaxed

New permissions include:

• Promotion of non-exclusive professional services through websites.
• Use of "Push Technology" for:
• Consultancy Services
• Accounting Services
• Advisory Services
• Business Support Services

Earlier restrictions on proactive dissemination of such services have been relaxed.

Example

Email newsletters, service alerts, GST updates, tax updates and knowledge updates can be circulated more freely within prescribed ethical boundaries.

3. International Networking Opportunities

ICAI has created a framework enabling Indian CA firms to collaborate with international networks.

Benefits include:

• Access to global expertise.
• Shared technology.
• International referrals.
• Cross-border assignments.
• Enhanced brand visibility.

4. Expanded Scope of Management Consultancy Services (MCS)

A significant addition has been made in the list of permissible services under Section 2(2)(iv).

New recognized services include:

• Social Impact Assessment
• CSR Impact Assessment
• Business Responsibility Reporting
• Sustainability Reporting
• ESG Reporting
• Sustainability Evaluation Services

This provision became effective from 11 December 2025 itself.

Opportunity for Practicing CAs

Large opportunities exist in:

• Corporate ESG reporting
• BRSR assignments
• CSR impact studies
• NGO evaluations
• Sustainability assurance support

5. Use of Modern Communication Tools

The revised Code recognizes current professional practices.

Members can:

• Conduct webinars.
• Host educational events.
• Publish professional content digitally.
• Use technology-driven client communication mechanisms.

Subject to dignity and professional conduct requirements.

6. Greater Flexibility in Professional Presentation

The revised Code permits more informative disclosure relating to:

• Areas of specialization.
• Professional qualifications.
• Firm profile.
• Service offerings.
• Sector expertise.

However:

• Comparative advertisements remain prohibited.
• Misleading claims remain prohibited.
• Solicitation remains restricted.

7. Ethical Restrictions Continue

Despite liberalization, the following remain prohibited:

A member cannot:

• Claim superiority over another CA.
• Guarantee results.
• Use misleading advertisements.
• Make false statements.
• Indulge in fee undercutting contrary to professional dignity.
• Use testimonials in a deceptive manner.
• Solicit professional work improperly.

These continue to attract disciplinary action.

8. Changes Relevant to CA Firms

Firms may now prominently showcase:

• Industry expertise.
• Sector specialization.
• Team strength.
• Professional credentials.
• Service portfolios.
• Knowledge resources.

This is particularly beneficial for firms engaged in:

• Statutory Audit
• Bank Audit
• PSU Audit
• GST Advisory
• Direct Tax Practice
• Forensic Audit
• Insolvency Practice
• ESG & Sustainability Services.

9. Disciplinary and Professional Misconduct Provisions Retained

Volume-I continues to contain:

First Schedule Matters

• Professional misconduct in practice.
• Professional misconduct generally.
• Other misconduct.

Second Schedule Matters

• Gross negligence.
• Failure to disclose material facts.
• Independence violations.
• Professional misconduct requiring Council action.

The disciplinary framework under the Chartered Accountants Act remains unchanged.

10. Most Important Changes for Practicing CA Firms

Key Takeaway for Practitioners

For firms like M/s Vinay Naveen & Co., the most commercially significant changes are:

1. Liberalized advertisement framework.
2. Expanded website and digital marketing permissions.
3. Recognition of ESG, BRSR and Sustainability assignments.
4. Social Impact and CSR Impact Assessment opportunities.
5. Greater freedom in showcasing expertise and professional capabilities.
6. Enhanced global networking opportunities for Indian CA firms.

Official Volume-I PDF:
ICAI Code of Ethics Volume-I (13th Edition)

https://resource.cdn.icai.org/92476coe2026v2.pdf DETAILED EXACT

ICAI Code of Ethics (13th Edition) – Volume II (Effective 1 April 2026)

Volume II contains the converged 2024 IESBA International Code of Ethics, including Independence Standards for Audit, Review and Sustainability Assurance Engagements. ICAI has substantially aligned Indian ethical requirements with global standards.

Structure of Volume II

Part 1 – Compliance with the Code

Applicable to all professional accountants.

Covers:

• Fundamental ethical principles
• Conceptual framework
• Identification of threats
• Evaluation of threats
• Safeguards
• Professional judgment
• Professional skepticism
• Ethical conflict resolution

Fundamental Principles:

1. Integrity
2. Objectivity
3. Professional Competence and Due Care
4. Confidentiality
5. Professional Behaviour

These principles remain the foundation of all professional conduct.

Five Categories of Ethical Threats

Volume II continues the threat-based approach:

1. Self-Interest Threat

Example:

• Dependence on a major client.
• Financial interest in client.

2. Self-Review Threat

Example:

• Auditing work previously performed by the firm.

3. Advocacy Threat

Example:

• Promoting client shares.
• Representing client in disputes.

4. Familiarity Threat

Example:

• Long association with management.

5. Intimidation Threat

Example:

• Pressure from management.
• Threat of dismissal.

Every engagement must be assessed through this framework.

Strengthened Auditor Independence Requirements

The most significant Volume II changes relate to independence.

New Explicit Prohibitions

An audit firm cannot accept or continue certain audit engagements where prior non-assurance services create a self-review threat.

Particularly relevant for:

• Listed companies
• Public Interest Entities (PIEs)
• Large regulated entities

ICAI specifically notes that if a firm has provided certain non-assurance services that affect financial statements, the firm may be prohibited from accepting the audit assignment.

Public Interest Entity (PIE) Concept Expanded

Volume II places special emphasis on PIEs.

Examples generally include:

• Listed entities
• Banks
• Insurance companies
• Other entities where public confidence is critical

For PIE audits:

• More stringent independence standards.
• Additional restrictions on services.
• Stronger safeguards.
• Enhanced partner rotation requirements.

Non-Assurance Services (NAS) – Major Revisions

One of the biggest areas of change.

Services requiring close examination:

Accounting and Bookkeeping

Restrictions become stricter where:

• The service affects audited financial statements.
• Self-review threats arise.

Valuation Services

Restricted when:

• Material effect on financial statements exists.

Tax Services

Special care required for:

• Aggressive tax planning.
• Tax positions affecting financial statements.

Internal Audit Services

In many situations:

• Internal audit and statutory audit together may not be permissible.

IT System Services

Restrictions where:

• Systems generate accounting records.
• Financial reporting processes are affected.

Corporate Finance Services

Restrictions where:

• Independence may be impaired.

Volume II provides detailed guidance engagement-wise.

Fees and Economic Dependence

The Code strengthens safeguards where:

• Fees from one client become substantial.
• Fee dependence threatens objectivity.

Considerations include:

• Percentage of firm revenue.
• Duration of dependence.
• Need for external quality review.

Special rules apply for PIE audits.

Long Association of Personnel

Volume II continues and strengthens requirements concerning:

Engagement Partner Rotation

Particularly for:

• Listed entities
• PIEs

Risks addressed:

• Familiarity threat
• Excessive management influence
• Loss of professional skepticism

Cooling-off periods remain an important safeguard.

NOCLAR Expansion

NOCLAR = Non-Compliance with Laws and Regulations.

A major ICAI announcement accompanying Volume II is that NOCLAR provisions are now extended to:

• All listed entities.
• Material subsidiaries of listed entities.

Auditors must:

• Understand suspected non-compliance.
• Discuss with management.
• Escalate where appropriate.
• Consider public interest implications.

This substantially expands auditor responsibilities.

Professional Skepticism Emphasized

The revised Code repeatedly stresses:

• Independent thinking.
• Challenge of management assumptions.
• Avoidance of bias.
• Evidence-based conclusions.

This aligns ethical obligations with auditing standards.

Sustainability Assurance – New Chapter

One of the most important additions.

New International Ethics Standards for Sustainability Assurance (IESSA)

Volume II now includes:

• Ethics requirements for sustainability assurance engagements.
• Independence standards for ESG assurance.
• Requirements for sustainability reporting assurance.

Applicable in areas such as:

• ESG Reporting
• BRSR Assurance
• Sustainability Reports
• Climate-related disclosures
• Carbon reporting

This is entirely new compared to earlier editions.

Technology and Emerging Services

Volume II recognizes emerging professional environments involving:

• Artificial Intelligence
• Data Analytics
• Digital Reporting
• Automated Systems
• Technology-enabled Assurance

Members must ensure:

• Competence before accepting work.
• Adequate supervision.
• Proper documentation.
• Compliance with ethical principles.

Key Practical Implications for Practising CA Firms

Most Important Takeaways for Practitioners

1. Auditor independence requirements are substantially stronger.
2. Non-Assurance Services to audit clients face tighter restrictions.
3. NOCLAR obligations are expanded to listed entities and material subsidiaries.
4. Public Interest Entity audits have additional compliance requirements.
5. Sustainability Assurance and ESG engagements are formally brought into the ethical framework.
6. Every firm must implement a documented threat-and-safeguard evaluation process before accepting or continuing engagements.

Official Volume-II PDF:

https://resource.cdn.icai.org/92476coe2026v2.pdf

ICAI Code of Ethics (13th Edition) – Volume III

Ethics Standards for Sustainability Assurance (Effective 1 April 2026)

Volume III is an entirely new volume introduced in the 13th Edition. It incorporates the International Ethics Standards for Sustainability Assurance (IESSA) issued by the International Ethics Standards Board for Accountants (IESBA). The objective is to establish ethical and independence requirements for professionals providing assurance on ESG, Sustainability and BRSR disclosures.

Why Volume III is Important

Traditionally, auditors provided assurance on financial statements.

Now organizations are increasingly reporting:

• ESG Metrics
• Sustainability Reports
• Climate Disclosures
• Carbon Emissions
• BRSR Reports
• CSR Impact Reports
• Social Impact Reporting

Stakeholders require assurance on these reports.

Volume III creates a dedicated ethical framework for such engagements.

Scope of Sustainability Assurance Engagements

The Code applies when a practitioner provides assurance on:

Environmental Information

• Carbon emissions
• Greenhouse gas disclosures
• Energy consumption
• Water management
• Waste management
• Biodiversity disclosures

Social Information

• Labour practices
• Employee welfare
• Diversity and inclusion
• Human rights compliance
• Community impact

Governance Information

• Board governance
• Ethics policies
• Risk management
• Compliance systems

Regulatory Reporting

• BRSR
• ESG Reports
• Sustainability Reports
• Integrated Reports

Fundamental Principles Continue to Apply

The same five principles applicable to chartered accountants remain applicable:

Integrity

Be straightforward and honest.

Objectivity

Avoid bias and conflicts.

Professional Competence and Due Care

Maintain knowledge and skill.

Confidentiality

Protect information obtained.

Professional Behaviour

Comply with laws and avoid conduct discrediting the profession.

These principles form the foundation of sustainability assurance engagements.

Independence Framework

A major feature of Volume III is independence.

The practitioner must be independent in:

Mind

Ability to form an unbiased opinion.

Appearance

Reasonable third parties should perceive the practitioner as independent.

Even where actual independence exists, appearance of lack of independence may create a violation.

Threat-Based Approach

The Code requires identification and evaluation of five threats:

Where threats cannot be reduced to an acceptable level, the engagement must not be accepted or continued.

Self-Review Threat – Most Important Change

One of the strongest provisions concerns self-review.

Example

A CA firm:

• Designs ESG reporting framework.
• Prepares sustainability report.
• Calculates carbon emissions.

The same firm generally should not provide assurance on that information if it results in reviewing its own work.

This is similar to restrictions applicable in statutory audits.

Sustainability Assurance vs Consulting

Volume III clearly differentiates:

Permitted

• Sustainability advisory
• ESG consulting
• Climate strategy advice

Restricted

Providing assurance over information substantially generated by the firm itself where self-review threats become significant.

Appropriate safeguards must exist.

Fees and Compensation

Practitioners must evaluate:

• Dependence on one sustainability client.
• Contingent fee arrangements.
• Excessive fee concentration.

Where independence may be impaired, safeguards are required.

Gifts and Hospitality

The sustainability assurance team should not accept:

• Gifts
• Favours
• Benefits
• Hospitality

if such acceptance could influence professional judgment or create perception of influence.

Use of Experts

Many sustainability engagements involve specialists:

Examples

• Environmental engineers
• Climate scientists
• Carbon measurement experts
• ESG consultants
• Data analysts

The CA must evaluate:

• Competence
• Capability
• Objectivity

before relying upon their work.

Professional Competence Requirement

Before accepting sustainability assignments, practitioners should possess:

• ESG knowledge
• Sustainability reporting knowledge
• BRSR framework understanding
• Climate disclosure understanding
• Assurance methodology knowledge

Accepting work without competence may amount to ethical non-compliance.

Technology and AI Considerations

The Code recognizes increasing use of:

• Artificial Intelligence
• Automated analytics
• ESG software
• Data platforms
• Climate reporting systems

Members remain responsible for:

• Outputs generated
• Professional judgment
• Quality of assurance conclusions

Reliance on technology does not remove professional responsibility.

Documentation Requirements

Practitioners should document:

• Independence assessment
• Threat identification
• Safeguards applied
• Acceptance decisions
• Ethical judgments

Proper documentation is crucial for demonstrating compliance.

Key Opportunities for Chartered Accountants

Volume III formally recognizes a rapidly expanding practice area:

New Professional Opportunities

• ESG Assurance
• BRSR Assurance
• Sustainability Reporting Assurance
• Climate Disclosure Assurance
• Carbon Emission Verification
• Social Impact Assessment
• CSR Impact Assessment
• Integrated Reporting Assurance

These services are expected to grow significantly as sustainability reporting requirements expand globally and in India.

What Practising CA Firms Should Do Now

Immediate Action Points

1. Develop ESG and Sustainability expertise.
2. Establish independence policies for ESG assignments.
3. Create engagement acceptance procedures.
4. Train partners and staff on IESSA requirements.
5. Maintain separate teams for consulting and assurance where necessary.
6. Build capabilities in BRSR and sustainability reporting.
7. Document threat-and-safeguard evaluations for every assurance engagement.

Key Takeaway

Volume I liberalizes professional opportunities and advertisement rules.

Volume II strengthens auditor independence and introduces enhanced ethical requirements.

Volume III creates a completely new ethical and independence framework for Sustainability, ESG and BRSR Assurance engagements, positioning Chartered Accountants as key assurance providers in the sustainability economy.

Official Volume-II PDF:
https://resource.cdn.icai.org/92477coe2026v3.pdf

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