ICAI Peer Review Mandate: The Council of the Institute of Chartered Accountants of India (ICAI) at its 407th Meeting of the Council held from 7th-9th January 2022 decided to mandate the peer review process.
Peer Review Board of ICAI vide announcement dated 12th February, 2022 introduces peer review mechanism for Chartered Accountant (CA) firms offering assurance services. CA Institute has decided to put in place a mandatory peer review mechanism in a phased manner for certain categories of CA firms.
ICAI mandate the peer review process for coverage of more Chartered firms under peer review process. The rollout would steadily cover firms providing assurance services to companies other than those listed on stock exchanges.
This is a historic decision to mandate the peer review mechanism for certain categories of CA Firms rendering assurance services to specific class of entities and will go a long way in enhancing the audit quality.
ICAI Peer Review Mandate – Implementation Date
The roll out shall be made in four following stages:
| Phase | Date of implementation | Category of CA Firms covered |
|---|---|---|
| I | 1st April 2022 | Firms which have undertaken Statutory Audit of enterprises whose equity or debt securities are listed in India or abroad as defined under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. |
| II | 1st April 2023 | Firms which have undertaken 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 OR Firms having 5 or more partners anytime during the immediately preceding financial year. |
| III | 1st April 2024 | The firms which have undertaken 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 OR Firms having 4 or more partners may be covered in the Phase 3 of the rollout. |
| IV | 1st April 2025 | Firms conducting audits of branches of Public Sector banks OR Firms having 3 or more partners and rendering assurance services. |
Peer Review Mandate Phase-I April 2022
Peer Review Mandate – Phase 1: The firms falling under phase I of the roll out will be required to submit a prescribed declaration form.
It may be reiterated that phase-I for which mandate is applicable from April 1, 2022 covers firms which have undertaken Statutory Audit of enterprises whose equity or debt securities are listed in India or abroad as defined under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The CA Firms falling under Peer Review Mandate Phase-I will be required to submit a declaration form https://forms.office.com/r/AA5Zpgdsrr. The last date for submitting the declaration form is March 31, 2022.
DECLARATION BY PRACTICE UNITS FALLING UNDER PHASE-I OF MANDATE
The Chairman, Peer Review Board,
The Institute of Chartered Accountants of India, ICAI Bhawan, Administrative Block, 3rd Floor, A-29, Sector 62, NOIDA 201309
Dist- Gautam Budh Nagar (UP).
- Question
Option-1: I/We hereby declare that my/our firm has during the year 2018-22 has been appointed as a Statutory Auditor of enterprises whose equity or debt securities are listed in India or abroad as defined under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015; OR
Option-2: I/We hereby declare that my/our firm is in the process of been appointed as a Statutory Auditor of enterprises whose equity or debt securities are listed in India or abroad as defined under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Details pertaining to my Firm/ Proprietorship are as follows:
- Name of practice unit (as per ICAI Records):
- Head Office Address (as per ICAI Records):
- Status (Partnership/ Proprietorship / Limited Liability Partnership / Practicing in Individual Name)
- Firm Registration Number/ Membership No. (in case of an individual practicing in own name)
- Contact Number
- Email Address:
- Number of Partners
- Last Peer Review Certificate No. (if previously issued)
- Date
Peer Review Mandate Phase-II April 2023
Peer Review Mandate – Phase 2: This phase will start from 1st day of April, 2023. The following Chartered Accountant Firms will be covered in Phase II:
- As on the 31st March of immediately preceding financial year, the Firms which have undertaken Statutory Audit of unlisted public companies having
- Paid-up capital of not less than ₹500 Crores or
- Annual turnover of not less than ₹1000 Crores or
- In aggregate, outstanding loans, debentures and deposits of not less than ₹500 Crores; OR
- Firms having 5 or more partners anytime during the immediately preceding financial year.
Peer Review Mandate Phase-III April 2024
Peer Review Mandate – Phase 3: This phase will start from 1st April, 2024. The following CA Firms will be covered in Phase III:
- Firms which have undertaken the Statutory Audit of entities which have raised funds from public or banks or financial institutions of over ₹50 Crores during the period under review or of any body corporate including trusts which are covered under public interest entities; OR
- Firms having four or more partners may be covered in the Phase III of the rollout.
Peer Review Mandate Phase-IV April 2025
Peer Review Mandate – Phase 4: This phase commence with effect from 1-April-2025. In this phase the following CA Firms will be covered:
- Firms conducting audits of branches of Public Sector banks; OR
- Firms having three or more partners and rendering assurance services.
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