The Ethical Standards Board finalized revision of ‘FAQs on Ethical issues’, its publication, and it was released at the Annual Function of the Institute held on 11th February, 2012.
The Ethical Standards Board is engaged in bringing out awareness of the provisions of Code of Ethics among the members and devise ways to acquaint the members belonging to all areas of the Country, including the remote areas. The Board is pursuing programmes, seminars, workshops, symposia etc. on various ethical issues of interest to the members, across the Country.
The Ethical Standards Board is engaged in resolving grievances/queries/clarifications of members, on ethical issues, received vide different modes, including e-sahayataa. All the queries are disposed off within 24 to 48 hours.
The Ethical Standards Board is considering revision of Advertisement & Website Guidelines of ICAI due to changed circumstances. A Study Group of Ethical Standards Board is deliberating on this currently.
Significant Initiatives of Ethical Standards board in 2014-15
Revision of ICAI Code of Ethics Ethical Standards Board is considering the changes in the ICAI Code of Ethics in light of the changes brought out by the IESBA Code of Ethics, 2014, Companies Act, 2013 and other developments.
ICAI Code of Conduct for elected, elected, nominated and co-opted representatives Ethical Standards Board is considering the ICAI Code of Conduct for elected, nominated and co-opted representatives.
Recent Decisions of Ethical Standards Board
A member in practice cannot hold Customs Brokers Licence under section 146 of the Customs Act, 1962 read with Customs Brokers Licensing Regulations, 2013 in terms of the provisions of Code of Ethics.
A Chartered accountant in service may appear as tax representative before tax authorities on behalf of his employer, but not on behalf of other employees of the employer.
A chartered accountant who is the statutory auditor of a bank cannot for the same financial year accept stock audit of the same branch of the bank or any of the branches of the same bank or sister concern of the bank, for the same financial year.
A CA Firm which has been appointed as the internal auditor of a PF Trust by a Government Company cannot be appointed as its Statutory Auditor.
A concurrent auditor of a bank ‘X’ cannot be appointed as statutory auditor of bank ‘Y’, which is sponsored by ‘X’.
A CA/CA Firm can act as the internal auditor of a company & statutory auditor of its employees PF Fund under the new Companies Act (2013).
The Ethical Standards Board while noting that there is requirement for a Director u/s 149(3) of the Companies Act, 2013 to reside in India for a minimum period of 182 days in the previous calendar year, decided that such a Director would be within the scope of Director Simplicitor (which is generally permitted as per ICAI norms) , if he is non –executive director, required in the Board Meetings only , and not paid any remuneration except for attending such Board Meetings.
Permitting the use of firm name by client, mentioning the firm as a "Knowledge Partner" or in the "Thank You" advertisement, is not permissible.
Concurrent auditor of an entity cannot accept an assignment under ant statute.
A chartered accountant in practice may establish a TIN – FC, and may as well establish a TIN - FC under franchise from the other entity which is already a TIN – FC.
Quick Response Code (QR Code) may be printed on the visiting Card by a member in practice, provided that the Code does not contain information that is not otherwise permissible to be printed on a visiting Card.
A statutory auditor and tax auditor can not be valuer of the unquoted equity shares as it would create threats to independence of the auditor, which may not possibly be reduced by application of safeguards.
The use of banner with name of CA firm is not permissible in terms of provisions of Items 6 and 7 of Part –I of First Schedule to The Chartered Accountants Act, 1949.