The Institute of Chartered Accountants of India (ICAI) is set to widen its peer review mechanism for audit firms to ensure transparency and audit quality, the self regulator’s newly elected President Aniket Sunil Talati said in an interview emphasising that the watchdog will not hesitate to give exemplary punishment to erring professionals.
Talati said that ICAI’s peer review, a way of chekcing the processes followed by an audit firm by an external and independent audit professional, which currently applies to firms that audit listed companies, will be extended to all audit firms with five or more partners from 1 July.