ICMAI Issues Code of Ethics Including Independence Standards for Members, Effective from 1 June 2025

The Institute of Cost Accountants of India (ICMAI) has officially released the "Code of Ethics for Members of the Institute (Including Independence Standards)", which will come into force from 1st June 2025.

The code has been published under the name of CMA Bibhuti Bhusan Nayak, President of ICMAI, and compiled under the leadership of CMA Ashwin G Dalwadi, Chairman of the Cost Auditing and Assurance Standards Board (CAASB). The latest edition of the Code of Ethics is a compilation and guideline for ethical conduct expected from Cost and Management Accountants (CMAs) both, business practice and in the public eye as a representative of the profession.

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In his foreword, President Nayak emphasizes that the profession is grounded on a strong ethical foundation centred around the core principles of integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour.

The preface by CMA Ashwin G Dalwadi further outlines the context and necessity for updating the Code. He stresses that the CAASB has structured the Code to align with global best practices while addressing the specific regulatory needs of India.

He stressed that in today's dynamic business environment, ethical behaviour is not an option, but rather an essential tenet. The Code aims to provide guidance for members to identify, evaluate, and address threats to ethical compliance, particularly in the area of maintaining independence in assurance engagements.

ICMAI had earlier released the Exposure Draft Code of Ethics, including Independence Standards and invited constituent members to review and provide suggestions before issuing the final draft of the Code of Ethics.

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The document itself spans over 200 pages and is divided into several distinct parts, each focusing on a crucial aspect of professional ethics.

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The Table of Contents reveals a structured framework comprising Part A (General Application of the Code), Part B (Professional Accountants in Public Practice), and Part C (Professional Accountants in Business). The Code also includes detailed guidance on independence standards, provisions for addressing conflicts of interest, the importance of due diligence, and whistleblower protection mechanisms.

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The document also contains illustrative case studies and decisions, providing clarity on how ethical principles apply to practical scenarios such as dealing with conflicts of interest, objectivity in assurance engagements, and handling of confidential information.

ICMAI has positioned the code as both, a prescriptive and guiding document and as a regulatory tool to ensure that ICMAI members adhere to globally harmonized ethical and independence standards while navigating the cost accounting profession.

To Read the full text of the Order CLICK HERE

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