Role of ESB

To work towards evolving a dynamic and contemporary Code of Ethics and ethical behaviour for members while retaining the long cherished ideals of `excellence, independence, integrity’ as also to protect the dignity and interests of the members.





Ø  To examine various issues concerning Code of Ethics governing the members of the Institute.

Ø  To formulate and establish ethical standards for the profession.

Ø  To examine and advise on any ethical matters referred to the committee.

Ø  To review periodically and publish the revised Code of Ethics and their publications relating to ethics.

Ø  To promote public awareness and confidence in the integrity, objectivity, competence and professionalism of members and to co-ordinate with other Committees.

Ø  To examine and deal with the complaints of members against their unjustified removal as auditors of any entity as per procedure evolved and to take necessary steps to protect the interest of the members.




1.   Publications of Ethical Standards Board


ü  ‘Code of Ethics’ is a publication of the Board. It is revised by the Board as frequently as necessary to tune with the requirements of the present day. ICAI has adopted IFAC ‘Code of Ethics for professional accountants’ subject to variances, wherever required, to make it compatible with Indian laws. The adoption of IFAC Code is a step towards compliance of ICAI's membership obligations of IFAC.


ü  Other publications of the Board are: - ‘FAQs on Ethical Issues’, which has been revised in January, 2012, ‘Guidance Note on Independence of Auditors’, which is under revision (ESB’s recommendations on the matter are pending before the Council) and ‘Guidance Note on Revision of the Audit Report’.


2.   Creating awareness


ü  The Board promotes public awareness and confidence in the fundamental principles viz. integrity, objectivity, competence and professionalism for members.


ü  This website of the Board is the latest forum where members may access for update of their ethical know-how.  The important decisions of the Board are also posted on the webpage of ESB on the website of ICAI, i.e., for guidance of the members.


ü  The Board has brought out a special ethical awareness column ‘Know your Ethics’ being published regularly in the CA Journal since September, 2009.


ü  The Board conducts seminars and workshops for members on topics of ethics around the country for benefit of members. Last year, about 50 such programmes were organized by the ESB. This year, outreach programmes on ethical issues are also being conducted.


ü  Further, this year ESB is also taking string of novel measures in order to spread ethical awareness among members: sending weekly E-mail flashes on select ethical issues to members throughout India, distributing compendium of publications of ESB to members attending the programmes of ESB, also circulating CA Ethics Plus, a brochure on ethical issues, being the latest initiative of ESB to promote ethical standards.


3.   Advice on Ethical issues


ü  The Board examines and renders advice on ethical issues referred to it by the Council, other committees/departments of the ICAI and received from the members at large. The reference may be categorized as follows:-


·        Crucial issues of high importance involving ethical implications are  referred to the Board from time to time e.g. ‘Rotation of Auditors’ and ‘Code of Conduct for Elected Representatives of the Institute’ were referred by the Council to the ESB for  examination.


·        Other ethical issues impacting all members, whether raised by a committee or a member are examined by the Board and accordingly decided by ESB.



·        Simple queries and clarifications on ethical issues (received vide letter, e-mail or e-sahayataa) from members are replied by the Secretariat, and accordingly disposed off.


ü  Vetting of advertisements from ethical point of view, for publication in the various Journals of the Institute.


4.   Cases of Unjustified Removal of Auditors


ü  The Board examines and deals with the complaints of members against their unjustified removal as auditors of an entity, as per procedure evolved, and takes necessary steps to protect the interest of its members.