ICAI clears new networking and advertising guidelines for CA firms

New Delhi: The Institute of Chartered Accountants of India (ICAI) has approved new global networking guidelines and revised advertising norms for chartered accountant (CA) firms, according to news reports. 

The approvals, cleared by the ICAI Central Council during its meeting on December 10-11 in New Delhi, are intended to strengthen domestic CA firms and facilitate their participation at the global level.

ICAI President Charanjot Singh Nanda said the Council had cleared the global networking guidelines, which had been a long-standing demand of CAs. He added that the revised Code of Ethics, which allows limited advertising, would help Indian firms compete internationally.

“The intent of these guidelines is to help create an enabling environment where small and medium CA firms can also participate meaningfully in global collaborations on a level playing field,” Nanda said.

The guidelines have been formulated to provide a structured and legally compliant framework for Indian CA firms, domestic networks of CA firms, and management consultancy services companies registered with ICAI to formalise international affiliations and grant affiliations to overseas entities across jurisdictions.

“By providing this framework for networking and affiliation, the Guidelines empower Indian firms to benefit from shared knowledge, specialised expertise, advanced tools and technology, and collective reputation advantages, among others within global networks,” the ICAI said in a note.

Revised advertising norms

Under the revised Code of Ethics, CAs and firms will have more flexibility in advertising and website content. “They include more flexibility of content, advertisement through contemporary form in write-up, enabling websites for network firms and changes intended to enhance the visibility of firms and facilitate the dissemination of information through digital platforms,” Nanda said.

The revised Code of Ethics will come into force from 1 April 2026, while provisions enabling members or firms to engage in assessment and evaluation of social impact, CSR impact, business responsibility, sustainability reporting, and similar services will take effect from December 11, 2025.

The definition of 'management consultancy and other services' under the Chartered Accountants Act has been expanded to include forensic accounting, research analysis, social impact assessment and evaluation, and artificial intelligence.

Other updates include revised provisions relating to Non-Assurance Services (NAS) for audit clients, which enhance independence standards. “The new independence provisions, like non-acceptance of audit of PIE where non-assurance service of the same entity was done prior, etc., have been included,” ICAI said.

Additionally, the applicability of the 'Responding to Non-Compliance with Laws and Regulations' (NOCLAR) provisions during audit engagements of listed entities has been extended to all listed entities and their material subsidiaries.