ICAI

Extension of applicability of Peer Review Mandate for CA Firms under Phase II & III

Extension of applicability of Peer Review Mandate for CA Firms covered under Phase II & III. Revised Applicability of ICAI Peer Review Mandate 

According to FAQ on Peer Review Board issued by ICAI the term “peer” means a person of similar standing. The term “review” means a general survey or assessment of a subject or thing. The term “peer review” would mean review of work done by a professional, by another professional of similar standing. Peer review means an examination and review of the systems and procedures to determine whether they have been put in place by the PU for ensuring the quality of assurance including tendering services as envisaged and implied/mandated by the Technical Standards, Ethical Standards and Professional standards and whether these were effective or not during the period under review. In other words, the peer review involves examination of the systems and procedures of the PU but does not aim to identify isolated cases of engagement failure

In India Peer Review is applicable to all practicing Chartered Accountants and firms/Practice Unit. From 2017, newly constituted firms i.e. where constitution of firms is less than 1 year, can apply for peer review suo-moto if Member i.e. Proprietor/Partner has at least five years of post-qualification experience (holding full time COP.

Revised Applicability of ICAI Peer Review Mandate (Phase II & III)

Considering the requests from Practice Units, the ICAI has decided extension of the applicability of the Peer Review Mandate for the Practice Units covered under Phase II and III as under:-

Phase Category of firms covered for Mandatory Peer Review Date from which Peer Review is Mandatory
II

Practice Units which propose to undertake Statutory Audit of unlisted public companies having paid-up capital of not less than rupees five hundred crores or having annual turnover of not less than rupees one thousand crores or having, in aggregate, outstanding loans, debentures and deposits of not less than rupees five hundred crores as on the 31st March of immediately preceding financial year: For these Practice Units, there is a pre-requisite of having Peer Review Certificate.

OR

Practice Units rendering attestation services and having 5 or
more partners: For these Practice Units, there is a pre requisite of having Peer Review Certificate before accepting
any Statutory audit

01.07.2024 (Grace period allowed upto 30.06.2024
II

Practice Units which propose to undertake the Statutory Audit of entities which have raised funds from public or banks or financial institutions of over Fifty Crores rupees during the period under review or of any body corporate including trusts which are covered under public interest entities: For these Practice Units, there is a pre-requisite of having Peer Review Certificate.

OR

Practice Units rendering attestation services and having 4 or
more partners: For these Practice Units, there is a pre-requisite of having Peer Review Certificate before accepting
any Statutory audit

01.01.2015

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