ICAI

Audit Fee to be received only by digital modes/banking channels -ICAI revises Ethics

Acceptance of Audit Fee only through digital modes or banking channels from 01.04.2026 – ICAI revises Code of Ethics 

In a significant amendment to Code of Ethics, ICAI has mandated Chartered Accountant or CA Firms shall accept Audit Fee only through digital modes or banking channels from 01.04.2026. 

The Council of ICAI at its 447th Meeting approved the revised 13th Edition of the Code of Ethics. The new Code will be applicable from 1.4.2026. ICAI has now converged with the 2024 edition of the International Ethics Standards Board for Accountants (IESBA) Code of Ethics. The key enhancements made in the 13th Edition of the Code of Ethics include:- 

Advertisement and Website Guidelines in the Code of Ethics.
It is proposed to allow members and firms to use push technology for services that are not exclusive to the CA profession (e.g., consultancy, accounting, etc.).  Network firms registered with ICAI will now be permitted to develop and maintain their own websites.

Stringent provisions for auditor independence
An audit firm cannot accept the audit of a Public Interest Entity (PIE) if it has previously provided a non-assurance service that could create a self-review threat to the financial statements.

Applicability of the provisions on Responding to Non-Compliance with Laws and Regulations (NOCLAR) during the course of audit engagements has been now extended to all listed entities and their material subsidiaries.

Scope of Management Consultancy and Other Services (MCS) extended
The enhanced areas now cover social impact assessment, artificial intelligence-related services, forensic accounting, and other emerging professional domains.

Acceptance of Audit Fee only through digital modes or banking channels
It has been recommended that the CA or CA firms should accept audit fees only through digital modes or banking channels.

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