From April 1, all chartered accountant (CA) firms engaged with public listed companies will undergo mandatory peer review

From April 1 onwards, all chartered accountant (CA) firms engaged with public listed companies will undergo mandatory peer review, Debashis Mitra, president of Institute of Chartered Accountants of India (ICAI), said. The peer review is a thorough inspection of one firm’s professional competence by a fellow professional. ICAI has an empanelled list of expert members available for peer review.

Over the next three years, the roll out would steadily cover firms providing assurance services to companies other than those listed on stock exchanges also including the ones conducting audits of branches of PSBs, ICAI said. The peer review of all CA firms engaged with public listed entities is expected to be complete in four years time.

The practice of peer review has been in place for some time now though it was done on a voluntary basis. Mitra said 1,170 firms have undergone this review process voluntarily. “A detailed roadmap has been laid down which classifies Practice Units into four categories and prescribes the implementation of peer review process. The implementation will begin, in a phased manner, from April 1, 2022 and will first apply to practice units (Firms) that have undertaken Statutory Audit of enterprises whose equity or debt securities are listed in India or abroad,” ICAI said.

According to Mitra, ICAI has been continuously working towards improving the quality of assurance services rendered by its members. “Peer review is one such initiative, through which the ICAI has been working diligently to improve the quality of Assurance Perception Services provided by its member. Recently, the council of ICAI has mandated peer review mechanism for certain categories of firms rendering assurance services to specific class of entities, which will go a long way in enhancing the audit quality,” he said.

ICAI also plans to develop and issue a single Comprehensive Framework for Social Audit Standards for audit of Impact Reporting of Social Enterprises listed on SSE and area specific Social Audit Standards with respect to sub – themes of social impact, for example, poverty, nutrition etc. The standards would cover all aspects of assurance of impact reporting like, scope, engagement acceptance, basic principles, audit procedures, assurance report, documentation, etc.

4 thoughts on “From April 1, all chartered accountant (CA) firms engaged with public listed companies will undergo mandatory peer review”

  1. Jyoti Subarwal

    The profession of Chartered Accountants was at one time one of the most revered professions world over……not so now. It is unfortunate that most of us CAs get manipulated and are subjected to threats from corporates which we audit as statutory auditors, if we dont toe the line. At one end we are under threat if our reporting is inaccurate and on the other end we under threat of removal by the corporate if our reporting does not conform to their ” WANTING “. Who are we to look up to ? Which law or act can we fall back on for support ? Would any one endorse this view……….NO…..is UT FACTUAL…..YES.

    1. VENKATESH HUNASIGI CA

      There is one solution…..make audit compulsory for all businesses above Rs 10 crores turnover and appointment shall be done by central government only or through ICAI and audit fees to be paid by the appointing authority….this threat will go

  2. RAMANJANEYULU G V

    Certainly true neither fight nor flight is the situation. Moreover an SMP situation is too worse in the given scenario.

  3. For lay men this appears appears there is a lobby CA Institute which wants to crush upcoming chartered Accountant firms . This is like a police doing an audit on another police . Absurd

Comments are closed.