Financial Daily from THE HINDU group of publications
Wednesday, Apr 03, 2002

Port Info

Group Sites

Corporate - Auditing

ICAI unveils paper on peer review

Our Bureau

NEW DELHI, April 2

THE Institute of Chartered Accountants of India (ICAI) has come out with a "statement on peer review" which seeks to aid the professional firms in their quest for enhancement of the quality of work.

The main objective of peer review was to ensure that in carrying out their professional audit assignments, the ICAI members complied with the technical standards laid down by the institute and had in place proper system (including documentation systems) for maintaining the quality of the audit work they performed, the ICAI President, Mr Ashok Chandak, said.

Explaining further, he said that peer review did not seek to redefine the scope and authority of the technical standards specified by the council, but sough to enforce them within the parameters prescribed by the technical standards. Technical standards include accounting standards, statements on standard accounting practices, other authoritative pronouncements of the institute as well as notifications and directions that are given by the council to the members of the institute.

The Minister for Law, Justice and Company Affairs, Mr Arun Jaitley, formally released the statement finalised by the council of ICAI here.

ICAI has set up a Peer Review Board comprising 11 members, of whom six would be from the council and one member each from the Department of Company Affairs (DCA), Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Comptroller and Auditor General (C&AG), trade and commerce organisations which will have complete authority to get peer review conducted.

The board will be independent and will have its independent secretariat. The Peer Review Board is to be headed by Mr Sunil Bhargava, Chartered Accountant.

Further, the actual conduct of a peer review will be done by a reviewer (who will be a practising chartered accountant appointed by the board from a panel maintained by it for the purpose. The board on the receipt of the final report of the reviewer will decide whether or not to issue a certificate of peer review.

Even though peer review will be mandatory for all firms, the implementation will be staggered given the large number of audit firms all over the country. The first phase of implementation will begin on April 1, 2003.

Send this article to Friends by E-Mail

Stories in this Section
IOC may not pass on post-APM gains -- To add `value' to retail outlets

Tata Projects to build transmission line for PowerGrid
Precot Mills to buy back shares -- Pegs offer price at Rs 33
ICAI unveils paper on peer review
DCM Shriram promoters hike stake to 49.8 pc
Mahindra-BT teams up with VeriSign for lab
Network Associates development centre in Bangalore soon
TV-18 plans to expand abroad
`TV-18 is no more at the mercy of channels'
Workers urge Govt to rescue crisis-ridden TCC
Operations suspended at Philips Kolkata unit
TUs press for speedy revival of Trayons
Rahul Bajaj bullish on bottomline growth
Rs 160 cr locked in Gopalpur land acquisition -- SEZ sops bring cheer to Tata Steel
Branded oils may boost Oomerbhoy turnover
PowerGrid signs MoU with Centre
BPL healthcare division targets 50 pc growth
Haldia targets Rs 3,400-cr sales
IPCL turnover at Rs 5,400 cr
KIOCL turnover up Rs 712 cr
HEC pares losses by 48 per cent
KPCL turns around; nets Rs 67 crore
SAIL posts 7 pc growth in sales
`Investor protection possible through education'

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line