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). The Institute of Chartered Accountants of India (ICAI) has extended the implementation of the Peer Review Requirement for Phase IV of the mandate, demonstrating ICAI’s commitment to ensuring compliance and quality assurance in professional services. The applicability of the Peer Review Mandate for Practice Units covered under Phases IV 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.
ICAI Defers Phase IV of Peer Review Mandate to 31st Dec. 2026
The Institute of Chartered Accountants of India (ICAI) has postponed the execution of Phase IV of the Peer Review mandate by one year, extending the due date from January 1, 2026, to December 31, 2026.
ICAI Council took the decision and was notified by the Peer Review Board via an official notification on December 31, 2025.
Who Is Covered Under Phase IV of Peer Review
Phase IV of the Peer Review framework applies to particular categories of Practice Units (CA firms), which comprises:
- Firms proposing to undertake audits of branches of Public Sector Banks (PSBs), where possession of a Peer Review Certificate is a mandatory precondition, and
- Practice Units rendering attestation services with three or more partners, for whom a Peer Review Certificate is needed before accepting any statutory audit assignment
Revised Mandatory Implementation Date
From the revised timeline declared by ICAI, Peer Review under Phase IV will now become obligatory from December 31, 2026, instead of January 1, 2026, providing firms more time to prepare for compliance.
Relief for CA Firms and Practitioners
The deferment is anticipated to deliver the required breathing space to CA firms, particularly mid-sized and growing partnerships, permitting them to:
- Strengthen internal audit and documentation systems
- Complete Peer Review formalities without disruption to current assignments
- Plan statutory audit engagements in line with revised regulatory timelines
Background
The Peer revenue procedure, rolled out to improve the audit quality and professional norms, has been executed in phases. Phase IV was the final and most comprehensive phase, which covers firms undertaking sensitive and high-risk audit assignments.
What Practitioners are required to do
As the due date has been extended, the members of the ICAI are advised not to delay preparations and to start the Peer Review process in advance to prevent last-minute compliance problems.
official announcement by ICAI: https://resource.cdn.icai.org/90105prb-aps3736.pdf
