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What happened
The Institute of Chartered Accountants of India (ICAI) has postponed the peer review requirement for auditors of state-run bank branches until December 31, 2026. This extension applies to audit firms and reviewers involved in these audits, providing them more time to comply with the new regulation. The delay is part of a phased approach to implementing mandatory peer reviews for auditors across various firm categories to improve audit quality.
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Key insights
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Phased rollout of peer review: ICAI is implementing mandatory peer reviews in phases, starting with auditors of listed firms in April 2022 and moving to other auditor categories over time.
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Number of certified firms: As of early December, over 8,100 chartered accountant firms have valid peer review certificates, with more than 3,000 certificates issued in the current council year.
Takeaways
The deferment helps ensure smooth implementation of peer review requirements by giving auditors adequate time to meet the new standards, likely improving audit credibility and quality over time.