Curbs on ads by accounting firms lifted: ICAI
Breaking News: ICAI Lifts Restrictions on Ads by Accounting Firms
The Institute of Chartered Accountants of India (ICAI) has announced the operationalization of its revised Code of Ethics, effective this fiscal year. This move is expected to have a significant impact on the accounting industry, as it eases restrictions on chartered accountants (CAs) and their firms to advertise themselves and develop websites.
What the Revised Code of Ethics Means for CAs and Their Firms
According to ICAI President Prasanna Kumar D, the revised Code of Ethics will enable CAs and their firms to better present their service offerings and attract lucrative assignments. Prior to the issuance of the latest guidelines, CAs and their firms were allowed to advertise only in a limited manner, with restrictions on font size and photographs.
Key Changes to the Code of Ethics
The revamped Code of Ethics proposes new guidelines on several key issues, including:
- Sustainability assurance
- Audit fees
- Non-audit services for audit clients
These changes are in line with the government’s goal of creating large home-grown accounting and consultancy firms in India.
Minimizing Conflict of Interest and Preserving Auditor Independence
The new guidelines also clearly spell out circumstances under which CA firms can or cannot offer non-audit services to the same listed companies for which they are also the statutory auditors. This aims to minimize the scope for conflict of interest, preserve auditor independence, and bolster audit quality.
What’s Next for the Accounting Industry?
The ICAI council is working on opening up non-assurance services, such as consultancy work, by chartered accountants for audit clients, subject to certain conditions. This move is expected to have a significant impact on the accounting industry, and industry experts are eagerly awaiting further developments.
Source: WorldNewsAPI | Read original