ICAI has proposed to implement the Code of Ethics, 2018 w.e.f. 1 April, 2019 and has accordingly issued the exposure draft thereof for comments latest by 7 Nov. 2018, as under:
ICAI’s Code of Ethics, 2018 has been derived from the International Ethics Standards Board for Accountants (IESBA) Code of Ethics, 2018 issued by the International Federation of Accountants (IFAC).
Guidance contained in the proposed Code of Ethics, 2018 relates to engagements commencing on or after 1 April, 2019. However, for engagements commencing upto 31 March 2019, previous guidance may be applied up to completion of the
said engagements. Transitional arrangements are available in respect of specific sections of the proposed Code of Ethics, 2018.
It may be noted that the Code of Ethics for Professional Accountants (including Independence Standards) sets out fundamental principles of ethics for professional accountants, reflecting the profession’s recognition of its public interest responsibility. These principles establish the standard of behaviour expected of a professional accountant. The fundamental principles are: integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour.
The Code of Ethics for Professional Accountants (including Independence Standards) provides a conceptual framework that professional accountants are to apply in order to identify, evaluate and address threats to compliance with the fundamental principles. The Code sets out requirements and application material on various topics to help accountants apply the conceptual framework to those topics.
Further, in the case of audits, reviews and other assurance engagements, the Code of Ethics for Professional Accountants (including Independence Standards) sets out Independence Standards, established by the application of the conceptual framework to threats to independence in relation to these engagements.