Institute of Chartered Accountants prohibits professionals from competitive bidding below established minimum fees

The Institute of Chartered Accountants of India (ICAI) issued a regulatory directive barring chartered accountants from bidding below established minimum fees for professional assignments. This measure addresses aggressive undercutting among practitioners competing for corporate and institutional engagements. The professional body seeks to uphold service standards and prevent fee erosion across audit and advisory services. In practice, this restriction changes how accounting firms structure commercial proposals and respond to tender invitations from prospective clients.

Previously, competitive bidding often drove professional fees downward, impacting the resources allocated to rigorous statutory audits and compliance reviews. Under the current mandate, practitioners must align their pricing quotations with the minimum fee parameters set by the institute. Practicing chartered accountants and firm partners must immediately update their tendering guidelines, proposal templates, and pricing calculators to ensure full compliance with the institute's fee floor.

Firms should advise marketing and business development teams to reject tender requests that demand pricing below the authorized threshold. Bottom line: adherence to minimum fee guidelines protects accounting practices from regulatory disciplinary actions and preserves profit margins.