About Us

About Us

About Us

Ethical Standards Board is a non- standing Committee of ICAI , constituted in 1976 for the formulation of ethical standards. The profile of the Board is as under :-

Publications of Ethical Standards Board

‘Code of Ethics’ is a publication of ESB. It is revised by the Board as frequently as necessary to tune with the requirements of the present day. ICAI has adopted International Federation of Accountants (IFAC) /International ethics Standards Board for Accountants (IESBA) ‘Code of Ethics for professional accountants’ subject to variances, wherever required, to make it compatible with Indian laws. ESB keeps track of IESBA developments with regard to Code of Ethics, and accordingly takes further steps for its incorporation.

Other publications of the Board are: - ‘FAQs on Ethical Issues’, which has been revised in January, 2018, and ‘Guidance Note on Independence of Auditors’.

To formulate and establish ethical standards for the profession.


  • Advertisement Guidelines were framed by ESB in terms of Clause (7) of Part I of the First Schedule of the CA Act, 1949 through write up setting out the services rendered by a CA. Advertisement Guidelines issued on 14th May, 2008.

  • Council General Guidelines, 2008 (issued on 8th August, 2008) were framed on various issues e.g. Maintenance of Books of Account, Tax Audit Assignments under I. T. Act, 1961, Specified Number of Audit Assignments etc.

  • The Board considered the issue whether a Chartered Accountant firm can accept branch audit of a bank if one of the partners has taken loan from that bank or it’s any other branch.

  • Finalized Code of Conduct for elected and nominated Representatives of the Council, Regional Councils & Branches of the Regional Council of ICAI

  • Finalized the Know Your Client (KYC) norms for members.


Creating awareness

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

  • This website of the Board i.e esb.icai.org 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. www.icai.org, for guidance of the members.
  • The Board has brought out a special ethical awareness column ‘Know your Ethics’ being published regularly in the CA Journal since September, 2009.
  • The Board conducts seminars, workshops and other programmes for members on topics of ethics around the country for benefit of members.


Advice on Ethical issues

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
  • Other ethical issues impacting all members, whether raised by a committee or a member are examined by the Board and accordingly decided by ESB.
  • ESB Secretariat, besides rendering in -house advice on ethical issues referred to it, replies to the queries on ethical issues received from the members at large vide different modes (letter, e-mail and e-sahayataa).
  • Vetting of advertisements of members from ethical point of view, for publication in the various Journals of the Institute.


Cases of Unjustified Removal of Auditors

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.


To examine various issues concerning Code of Ethics governing the members of the Institute. Mission Statement:

“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”.

Terms of Reference: (Revised by the Council at its 262 Meet dt. 6-8 Sept, 06.)

  • To examine various issues concerning Code of Ethics governing the members of the Institute.
  • To formulate and establish ethical standards for the profession.
  • To examine and advise on any ethical matters referred to the committee.
  • To review periodically and publish the revised Code of Ethics and their publications relating to ethics.
  • To promote public awareness and confidence in the integrity, objectivity, competence and professionalism of members and to co-ordinate with other Committees.
  • 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.