ICAI has announced on 16/03/2024 that the second and third phase of the Peer Review Mandate has been further deferred/postponed to 01/07/2024 and 01/01/2025 respectively.
Peer Review Phase II further deferred to 01/07/2024 (grace period upto 30/06/2024)
In phase II, larger audit firms auditing big unlisted companies or providing attestation services need to get a Peer Review Certificate applicable from 01/07/2024, which involves review of their audit quality and processes by another audit firm.
i) Practice Units (audit firms) that undertake statutory audits of certain large unlisted public companies must have a Peer Review Certificate. These are companies meeting any of the following criteria:
a) Paid-up capital of Rs 500 crores or more
b) Annual turnover of Rs 1000 crores or more
c) Outstanding loans, debentures and deposits totaling Rs 500 crores or more as of the preceding March 31st
ii) Practice Units with 5 or more partners that provide attestation services (like audits/certifications) must also have a Peer Review Certificate before accepting any statutory audit assignments.
It may be noted that ICAI had earlier deferred the deadline for Phase II up to 01/04/2024, which now stands further deferred to 01/07/2024.
Peer Review Phase III Postponed to 01/01/2025
In phase III, audit firms auditing entities that meet certain public interest/funding criteria or firms providing attestation services with 4+ partners need to undergo a Peer Review process applicable from 01/01/2025 and obtain a certificate to ensure audit quality standards are met.
i) Practice Units (audit firms) that plan to conduct statutory audits of the following types of entities must have a Peer Review Certificate:
a) Entities that raised over Rs 50 crores from public, banks or financial institutions during the period under review
b) Body corporates including trusts classified as Public Interest Entities
ii) Practice Units with 4 or more partners that provide attestation services (audits, certifications etc.) must also have a Peer Review Certificate before accepting any statutory audit assignments.
It may be noted that earlier ICAI had announced that Phase III shall be implemented from 01/04/2024, which now stands deferred to 01/01/2025.
ICAI Announcement dated 16/03/2024: Second & third phase of Peer Review Mandate further deferred
Related Posts:
Second Phase Peer Review Mandate Further Deferred by ICAI to 01/04/2024
Second Phase of Peer Review now Mandatory from July 1, 2023: ICAI
ICAI mandates Phase II of Peer Review from 01/04/2023
|
Disclaimer: While reasonable efforts have been made to ensure the accuracy and reliability of the information presented in this article, it should not be considered as professional advice or guidance. For compliance, the readers are advised to directly refer to the relevant laws, regulations and notifications issued by the appropriate authorities. |
CA Abhinav Aggarwal is a qualified Chartered Accountant and ICAI member since 2010. He holds vast experience in Audit, Income Tax & GST and is a passionate writer on the CA profession and related topics.