The Institute of Chartered Accountants of India (ICAI) has released a comprehensive clarification on the Continuing Professional Education (CPE) requirements applicable from 1 January 2023 onwards.
The revised guidelines set out mandatory hours, structured and unstructured learning categories, and detailed exemptions for various groups of members. While the framework aims to strengthen professional competency, confusion continues among members regarding the 2+2 structured CPE hours relating to Standards on Auditing and Code of Ethics.
Revised Mandatory CPE Requirements
Members Below 60 Years Holding COP
For members below the age of 60 who hold a Certificate of Practice, ICAI has mandated the highest level of compliance. These members must complete 40 CPE hours each year, of which at least 20 hours must be structured learning. The remaining 20 hours may be completed either through structured or unstructured learning modes.
Members Below 60 Years Without COP and All Members Residing Abroad
Members who do not hold a Certificate of Practice but are below 60 years, as well as all members residing outside India, are required to complete 20 CPE hours annually. These hours may be earned through either structured or unstructured learning, offering greater flexibility.
Members Aged 60+ Holding COP
Members aged 60 years and above who hold a Certificate of Practice are required to complete 30 CPE hours in a calendar year. These may be in any combination of structured or unstructured learning.
Exemptions from CPE Compliance
First-Year Members
Members who obtain ICAI membership for the first time are exempted from fulfilling CPE requirements for the year of enrolment.
Permanent Exemptions
ICAI grants full exemptions to several categories of members, including those aged 60 and above without COP, judges of the Supreme Court, High Courts, District Courts and Tribunals, Members of Parliament and State Legislatures, Governors, officers of Central and State Civil Services, military personnel, judicial officers, and entrepreneurs running manufacturing businesses.
Temporary Exemptions
Temporary exemptions apply to female members on grounds of pregnancy, members with 40% or more permanent disability, and those suffering from prolonged critical illness. These exemptions must be supported by valid medical certification and are approved on a case-to-case basis by CPED.
Persistent Confusion Over 2+2 Structured CPE Hours
Council’s Clarification
Despite repeated announcements, many CA members continue to express uncertainty regarding the mandatory nature of the 2 structured hours on Standards on Auditing (SA) and 2 structured hours on the Code of Ethics. ICAI has now clarified once again that from Calendar Year 2024 onwards, these 4 structured hours are recommendatory. They are no longer mandatory and do not form a compulsory component of the annual CPE compliance requirements.
No Hardship or Compliance Obligation
ICAI emphasised that COP holders may complete these recommendatory hours at any time during the year, either through the Digital Learning Hub or in physical mode. Members have been assured that no compliance hardship arises specifically from this 4-hour component. The Council has advised that this clarification should be considered while planning annual CPE activities to prevent unnecessary confusion.
Online Structured Hours: Hybrid Relaxation Continues
Out of the mandatory structured hours for COP holders, up to 4 hours may be completed online through VCMs or the Digital Learning Hub. Any online structured hours earned beyond this limit will be treated as unstructured learning. However, all structured hours completed physically will continue to be recognised as structured learning without restriction. This hybrid model aims to balance flexibility with ICAI’s continued preference for higher-engagement physical programmes.
Conclusion
ICAI’s updated CPE framework for 2023 onwards seeks to balance professional upskilling with practical considerations for members across diverse roles and geographies. By offering detailed exemptions and reiterating the recommendatory status of the 2+2 structured hours on auditing and ethics, the Council aims to eliminate confusion and streamline compliance for thousands of professionals. The clarity provided is expected to assist members in planning their annual CPE activities effectively and without undue concern.
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