The Hindu Business Line : ICAI seeks more time on peer review norm

New Delhi, Aug. 12 Audit firms conducting statutory audits of listed companies may be required to necessarily hold a peer review certificate for them to render attest services to such companies.

Although the Institute of Chartered Accountants of India (ICAI) has accepted SEBI’s suggestion on such a norm, the Central Council of the institute is in favour of a two-year transition period before making it mandatory for audit firms of listed companies to obtain peer review certificate.

Listing agreement

This view of the ICAI is likely to be conveyed to SEBI, which is expected to introduce the necessary norm through amendments in the existing listing agreement between the companies and the stock exchange.

“We had in our July meeting of the council considered SEBI’s suggestion and reaffirmed our acceptance. There are some firms who are doing statutory audit of listed companies who are yet to obtain peer review certificate,” Mr Sunil Talati, ICAI President, told Business Line.

Public interest

Considering the public interest involved in listed companies, the Central Council had accepted SEBI’s suggestion that audit of listed companies be conducted by firms of chartered accountants that have undergone a peer review.

ICAI had established the peer review board in 2002 and some 1,200 firms have already been given a peer review certificate so far.

A peer review is essentially aimed at improving the quality of audit work and also helps in boosting the confidence of stakeholders in the companies.

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