[BREAKING] ICAI defers Peer Review Mandate Phase III and IV Implementation

The Institute of Chartered Accountants of India ( ICAI ) has deferred the implementation of Phase - III and Phase IV of the Peer Review Mandate.

ICAI Defers Peer Review Mandate for Phases III and IV

In a significant update for Chartered Accountants and Practice Units, the Institute of Chartered Accountants of India ( ICAI ) has announced a deferment in the implementation of Phases III and IV of the Peer Review Mandate. As per the announcement dated January 22, 2025, the deadlines for these phases have been extended by six and nine months, respectively.

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The revised deadlines for the implementation are as follows: –

• Phase III: Mandatory from July 1, 2025
• Phase IV: Mandatory from January 1, 2026

Phase III is applicable to —

• Practice Units conducting statutory audits for entities that raised over ₹50 crore from public, banks, or financial institutions.
  • Practice Units with four or more partners offering attestation services must hold a Peer Review Certificate before accepting statutory audits.

Whereas, Phase IV pertains to –

• Practice Units conducting audits of branches of Public Sector Banks.
  • Practice Units with three or more partners offering attestation services must possess a Peer Review Certificate prior to undertaking statutory audits.

The Peer Review requirement is a quality assurance initiative by the ICAI, aimed at enhancing professional standards in audit and attestation services.

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