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

ICAI extends Implementation of Peer Review Requirement (Phase II & III)
ICAI - Peer review mandate - Revised applicability - Practice units - TAXSCAN

The Institute of Chartered Accountants of India ( ICAI ) has extended the applicability of the Peer Review Mandate for Practice Units covered under Phase II and III.

This decision comes after requests from Practice Units and aims to ensure compliance and quality assurance in professional services.

If you are a Practice Unit that falls under Phase II or III of the Peer Review Mandate, you will need to have a Peer Review Certificate before you can undertake certain types of audits.

Phase II applies to Practice Units that propose to undertake Statutory Audit of unlisted public companies having a paid-up capital of not less than rupees five hundred crores or having an 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 the immediately preceding financial year.

Phase III applies to 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.

The new deadlines for compliance are:

Phase II: 1 July 2024 (with a grace period until 30 June 2024)

Phase III: 1 January 2025

How to get a Peer Review Certificate

The ICAI has a Peer Review Board that is responsible for issuing Peer Review Certificates. You can find more information on the ICAI website https://www.icai.org/.

Why is this important?

The Peer Review Mandate is designed to improve the quality of audits and attestation services in India. By requiring Practice Units to undergo peer review, the ICAI is hoping to ensure that these services are conducted in accordance with professional standards.

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