ICAI Code of Ethics 2025: Major Revisions Announced Across Volumes I, II & III
The Institute of Chartered Accountants of India (ICAI) has introduced significant revisions to the Code of Ethics 2025, marking one of the most comprehensive updates since the release of the 12th edition in 2020. This revamped version is designed to align with the IESBA 2024 standards, ensuring the Indian accounting profession remains globally relevant and ethically sound.
These changes aim to modernize ethical practices, incorporate sustainability assurance, regulate the use of artificial intelligence in professional services, and strengthen independence and integrity guidelines for chartered accountants.
Overview of the 2025 Code of Ethics Revision
The ICAI Code of Ethics 2025 focuses on bridging the gap between traditional ethical frameworks and emerging global trends in technology, sustainability, and forensic accounting. Below is a snapshot of what’s new in each volume.
| Volume | Key Focus Areas | Purpose of Revision |
|---|---|---|
| Volume I | Global Alignment & Integrity | Aligns Indian ethics with IESBA 2024 and enhances global consistency. |
| Volume II | Domestic & Practical Implementation | Updates domestic practices and case-based ethical applications. |
| Volume III | Ethical Guidelines Recast | Simplifies and modernizes guidelines for professional conduct. |
Highlights of Volume I – Global Alignment and Integrity
Volume I of the ICAI Code of Ethics 2025 introduces principles that bring Indian standards in line with international ethics. This volume emphasizes integrity, objectivity, and professional competence, while adding detailed clauses for AI-based assurance, sustainability reporting, and forensic accounting practices.
It further strengthens independence requirements for auditors and mandates transparency in engagements involving emerging technologies and sustainability disclosures.
Volume II – Domestic Adaptations and Practical Guidelines
Volume II focuses on contextualizing global standards for Indian scenarios. It includes practical guidance for professionals facing ethical dilemmas in real-world situations. The revisions also address local compliance, taxation, and digital audit practices, offering enhanced clarity on the application of independence principles in complex business environments.
Volume III – Recast of Ethical Guidelines
Volume III undergoes a complete restructuring of ethical interpretations to make the Code easier to understand and apply. It modernizes outdated provisions and simplifies references to past ethical rulings. The emphasis is on practical implementation, ensuring the Code remains accessible and relevant to new professionals entering the field.
Comparison with the 12th Edition (2020)
The 12th edition, implemented in July 2020, laid the groundwork for ethical modernization. However, with evolving professional responsibilities, ICAI found it essential to revise and expand the Code. The table below highlights the key differences between the previous and current editions:
| Aspect | 12th Edition (2020) | 2025 Revision |
|---|---|---|
| Global Alignment | Partially aligned with IESBA 2020 | Fully aligned with IESBA 2024 |
| Technology Focus | Limited coverage | Inclusion of AI and data ethics |
| Sustainability Assurance | Not defined | New ethical framework introduced |
| Forensic and Investigation Services | Not explicitly covered | Clear guidance and boundaries established |
| Independence Norms | Basic framework | Strengthened and detailed standards |
How to Access the Exposure Drafts
ICAI has released exposure drafts of all three volumes for public review and feedback. Members and stakeholders are encouraged to study the documents and share their suggestions before the finalization of the Code.
You can access the exposure drafts from the official ICAI links below:
Submit Your Feedback to ICAI
ICAI has invited comments, inputs, and professional suggestions from members and the public. Your feedback plays a crucial role in refining the ICAI Code of Ethics 2025 before its official adoption.
You can send your inputs via email to:
Alternatively, you may submit feedback through the official Microsoft form available at:
https://forms.office.com/r/CunNrHqpck
The last date for submission is November 26, 2025.
Why These Changes Matter
The updated Code reinforces ICAI’s commitment to maintaining the highest ethical standards while embracing innovation. By integrating sustainability and AI-based audit ethics, the Code ensures that Indian chartered accountants remain globally competitive and socially responsible.
This initiative also reflects ICAI’s proactive approach in anticipating ethical challenges of the future rather than reacting to them after they occur.
Conclusion
The ICAI Code of Ethics 2025 represents a forward-thinking evolution in the accounting profession. By integrating technology, sustainability, and global ethical principles, ICAI is setting a new benchmark for professionalism in India. Every stakeholder’s participation in reviewing and shaping this Code will help ensure it truly serves the needs of the modern financial landscape.
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