5 hrs ago
ICAI Expands Peer Review Mandate to PSB Branch Auditors
ICAI checks whether accounting firms are doing audits properly through a process called peer review.
From January 2027, this check will also apply to auditors of public sector bank branches.
The rule already applies to principal auditors of these banks and several other types of audit firms.
ICAI expects the change to affect about 15,000 firms.
It has also created an online system to make peer reviews faster.
ICAI is thinking about applying the rule to private sector bank branch auditors too.
The institute also wants to finish disciplinary cases against chartered accountants within one year.
Around 400 cases are currently waiting, and the first review of a complaint can take six to eight months.
The Institute of Chartered Accountants of India will require peer reviews for all component auditors conducting public sector bank branch audits from January 2027.
The expanded requirement is expected to cover about 15,000 audit firms, while peer review for PSB principal auditors already exists.
ICAI has moved peer review from a manual process to a web portal and is considering extending it to private sector bank branch auditors.
ICAI President Prasanna Kumar D said the institute aims to resolve disciplinary cases within 365 days instead of the current two to three years.
About 400 disciplinary cases are pending after prima facie opinions were framed and accepted, while that initial stage can take six to eight months.
- Who
- The Institute of Chartered Accountants of India, its president Prasanna Kumar D, and auditors of public sector bank branches.
- What
- ICAI is making peer review mandatory for component auditors of public sector bank branches and plans to speed up disciplinary case disposal.
- Where
- The requirements apply to audit firms and public sector bank branches in India.
- When
- The expanded peer review requirement begins in January 2027; ICAI aims to resolve disciplinary cases within 365 days.
- Why
- ICAI says the measures will expand audit-quality oversight, increase review capacity, and reduce delays in disciplinary proceedings.
Key facts
- Peer review start date
- January 2027
- Scope of expansion
- Component auditors conducting public sector bank branch audits
- Expected coverage
- About 15,000 audit firms
- Current peer reviewers
- More than 1,000
- Disciplinary target
- Dispose of cases within 365 days
- Pending disciplinary cases
- About 400 cases
- Prima facie review time
- Six to eight months
Quotes
Prasanna Kumar D
President of the Institute of Chartered Accountants of India
“Earlier, 4,000-5,000 firms used to be certified by us, with the certification valid for three years. Now, even 30,000-40,000 CA firms can be peer reviewed in a year. To that extent, we have increased our capacity.”
financialexpress.com
“We are trying to dispose of these cases within one year. At present, we are not planning any procedural reforms. Instead, we are devoting our time and energy to achieving this target.”
financialexpress.com
Sources
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