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ICAI to Expand Peer Review to Bank Auditors
20 Sep
Summary
- Peer review requirement extends to all PSB branch auditors by January 2027.
- ICAI aims to reduce disciplinary case disposal time to 365 days.
- Web portal now manages the entire peer-review process.
The Institute of Chartered Accountants of India (ICAI) is set to significantly expand its peer review mandate. Effective January 2027, all component auditors conducting audits for public sector banks (PSBs) will be required to undergo peer review. This expands upon the existing requirement for principal auditors of PSBs.
The peer review process, already mandatory for firms auditing listed entities and large unlisted public companies, is moving to a digital platform. This new web portal streamlines the process from application to certification, increasing ICAI's capacity to handle a larger volume of reviews.
ICAI is also focused on improving its disciplinary processes. The institute plans to reduce the time taken to dispose of disciplinary cases against chartered accountants to a maximum of 365 days. Currently, these cases can take two to three years to resolve.
While the disciplinary process involves several stages, including the formation of a prima facie opinion which can take six to eight months, ICAI is dedicating resources to meet its new, faster resolution target without immediate procedural changes.
