The Institute of Chartered Accountants of India (ICAI) has proposed a significant expansion of professional opportunities for Chartered Accountants (CAs), including raising the cap on statutory audits from 30 firms to 40 firms and easing several practice-related restrictions.
According to the draft Code of Ethics recently issued by the institute, the move would allow CAs to audit up to 40 entities — including companies, limited liability partnerships (LLPs), and partnership firms — compared to the current limit of 30. The ICAI has also proposed to permit auditors to conduct non-educational seminars, advertise under relaxed norms, and take up additional non-audit assignments, particularly in the MSME sector.
Statutory ceiling unchanged under Companies Act
Despite these changes, ICAI clarified that professionals must still comply with the Companies Act, 2013, which restricts an auditor or partner from auditing more than 20 companies simultaneously, excluding one-person companies, dormant companies, and small firms with paid-up capital below ₹100 crore.
More flexibility for events and sponsorships
Under the new draft, CAs would be allowed to sponsor select domestic and international events beyond purely educational seminars, including those of national or regional importance, with ICAI’s approval. Currently, only ICAI-organised educational events can be sponsored.
Advertising and directory norms liberalised
The revised guidelines also propose greater flexibility in advertising. While maintaining restrictions on exaggerated claims or disparaging remarks, ICAI plans to let firms include more relevant details in their promotional materials and modernise the definition of a “write-up.”
Additionally, ICAI intends to repeal separate directory guidelines, simplifying how member and firm names appear in professional listings.
Audit work in insolvency cases permitted
In another major relaxation, the ICAI will now allow CAs to accept audit assignments for companies under insolvency resolution — even if fees to a previous auditor remain unpaid. This change aligns with provisions under the Insolvency and Bankruptcy Code (IBC), 2016.
Higher limit for non-audit work
ICAI also proposes to raise the revenue threshold for non-audit work from ₹50 crore to ₹250 crore. This means CAs can now accept non-audit work from larger public or government companies, increasing professional opportunities.
Experts believe these reforms could pave the way for the emergence of larger domestic CA firms capable of competing with international audit and advisory players, marking a new phase of growth and global alignment for the Indian accounting profession.
