Financial Daily from THE HINDU group of publications
Tuesday, Mar 12, 2002
Financial Daily from THE HINDU group of publications Tuesday, Mar 12, 2002 |
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Corporate
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Auditing ICAI sets up board for peer review Our Bureau
NEW DELHI, March 11 IN an effort to improve the quality of audit work undertaken by its members, the 30-member central council of the Institute of Chartered Accountants of India (ICAI) has adopted a statement on peer review, which seeks to put in place a framework for peer review of auditors across the country. "The objective of peer review is to ensure that in carrying out their professional audit assignments, the members of the institute comply with the technical standards laid down by the institute and also have in place a proper system for maintaining the quality of audit work they perform," the ICAI President, Mr Ashok Chandak, told presspersons here. Mr Chandak said that peer review would be mandatory for all firms. "However, the implementation will be staggered, given the very large number of audit firms all over the country. The first phase of implementation will begin on April 1, 2003," he said. The ICAI has set up an independent Peer Review Board consisting of 11 members, of which six are from the council and one each from the Department of Company Affairs, the Reserve Bank of India, the Securities and Exchange Board of India, C&AG, trade and commerce organisation. "The Peer Review Board will meet at least four times in a year and will oversee the functioning of the peer review process. At stage I, the peer review will be conducted on all auditors or audit firms performing audit of public sector undertakings, banks and companies having a paid-up equity capital of Rs 5 crore or above and turnover of Rs 50 crore or above," Mr Chandak said. The peer review certificate issued by the board will be valid for three years in the case of such PSUs, banks and companies.
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