An extension in the implementation of the Peer Review Requirement for Practice Units has been announced by the Institute of Chartered Accountants of India (ICAI). This extension applies to Phase II and III of the mandate, showing ICAI’s devotion to ensuring compliance and quality assurance in professional services. The applicability of the Peer Review Mandate for Practice Units covered under Phase II and III has been extended by the Institute of Chartered Accountants of India ( ICAI ).
This decision arrives after requests via Practice Units and seeks to ensure compliance and quality assurance in professional services.
If you are a Practice Unit that comes beneath Phase II or III of the Peer Review Mandate then you shall required to have a Peer Review Certificate before you can embark on certain sorts of audits.
Phase II is applicable for practice Units that suggest undertaking a Statutory Audit of unlisted public companies that have a paid-up capital of not less than Rs 500 crores or have an annual turnover of not less than Rs 1000 crores or have, in aggregate, outstanding loans, debentures and deposits of not less than rupees five hundred crores as on the 31st March of the former fiscal year.
Phase III is applicable for the Practice Units that suggest undertaking the Statutory Audit of entities that have raised funds via public or banks or financial institutions of Rs 50 Crores in the duration beneath the review or of any body corporate including trusts which are counted under public interest entities.
The new due dates for compliance are:
- Phase II: 1 July 2024 (with a grace period until 30 June 2024)
- Phase III: 1 January 2025
What is the method to get a Peer Review Certificate?
The ICAI has a Peer Review Board that is accountable for furnishing Peer Review Certificates. On the website of ICAI https://www.icai.org/. you can discover more information.
Why it is Essential?
The Peer Review Mandate is made to rectify the quality of audits and attestation services in India. The ICAI by instructing Practice Units to experience peer review, is expecting to ensure that such services are conducted as per professional standards.
official announcement by ICAI: https://resource.cdn.icai.org/79567prb63546.pdf
