ICAI’s New Code of Ethics Empowers CAs with Greater Flexibility and Global Reach

In a landmark move, ICAI has proposed sweeping changes to its Code of Ethics, set to take effect from April 1, 2026. The updated framework aligns with international standards and reflects India’s push to build globally competitive professional service firms. Among the most notable reforms is the increase in statutory audit limits from 30 to 40 entities, including companies, LLPs, and partnerships.

The new code also allows CA firms to advertise their services and maintain websites, a significant shift from previous restrictions. Additionally, auditors can now conduct non-educational seminars and take on more non-audit work, particularly in the MSME sector. These changes aim to modernize the profession and support India’s “Viksit Bharat” vision.

Key highlights:

• Audit limit raised from 30 to 40 entities
• CA firms can now advertise and host websites
• Expanded scope for non-audit work, especially for MSMEs
• New permissions for non-educational seminars
• Code aligns with IESBA 2024 global standards

Sources: Financial Express, Business Standard, Jurishour