ICAI Defers Peer Review Requirement for Practice Unit Covered under Phase II of Peer Review Mandate

To ensure quality assurance and enhance the credibility of the profession the Institute of Chartered Accountants of India (ICAI) introduced the concept of “Peer Review”. This review is an examination of the systems and procedures to determine whether the same has been put in place by the practice unit.

ICAI is constantly seen to enlarge the scope of peer review so as to maximize the coverage of firms under the peer review process. In the announcement dated 12.02.2022, they made it mandatory for the practice unit to hold a peer review certificate before undertaking an audit of all entities described under phase I, II, III, and IV. Each of these phases has its own respective effective dates.

Considering the fact that some Practice Units which require to get themselves Peer Reviewed under the II phase of the Peer Review were not aware of its mandatory nature, the council decided to defer the applicability of the second phase.

Click here to read more about the extension of the time period along with a comprehensive analysis of each phase.

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