Chapter 1

                                      Introduction                                     

Chapter 2

Applicability of Peer Review and its
Mandate Roll Out in Phases

1.     Submission of periodic limited review and audit reports by listed entities 

2.     Eligibility requirements for an initial public offer on SME Exchange 

3.     Rotation of audit partners 

3.1. Peer review applicability of sole practitioner/proprietorship 

4.     Peer Review Mandate - Roll Out Phases for various Practice Units 

4.1. Deferment of second phase of Peer Review Mandate 

4.2. Peer Review applicability coincides with classes of companies and bodies corporate governed by NFRA  

4.3. Certificates issued by Peer Review Board to Practice Units without end date 

Chapter 3

How to become Peer Reviewer

1.     Peer Reviewer needs to be member in practice 

2.     Ineligibility 

3.     Professional association with the Practice Unit

3.1.                           Cooling off period before and after appointment as peer reviewer:

3.2.                                                                              Independence and conflict of interest

3.3. Confidentiality 

4.     raining and Test for Peer Reviewers 

4.1.                                                               Empanelment remains in force for three years 

5.     Appointment of Peer Reviewer and his obligations 

5.1. Can any assistant be appointed for conducting peer review  

5.2. Obligations 

Chapter 4

Peer Review Process

1.     Objective 

1.1. Technical, Professional and Ethical Standards 

1.2. Technical Guides, Practice Manuals, Studies and Other Papers Published by AASB have no authority of the Council attached to them   

2.     Coverage of Peer Review  

2.1. Elements to be covered in peer review to include Standards, Reporting Quality, AQMM, ICAI Guidelines and Directions, Training programmes, Articleship engagements, etc.: Guideline 4(4) provides that the Peer Reviewer shall cover:

2.2. Practice Unit having branch office(s)

2.3. Sample checking by peer reviewer and criteria thereof 

2.4. Whether assurance engagements which have been subjected to any Regulatory Review should be selected in sampling 

2.5. Minimum sample size and consequent validity of Peer Review Certificate 

2.6. Suggested Format for List of Samples Selected to be submitted to the Board 

3.     Assurance Engagements to be covered by the Peer Reviewer during the peer review process 

4.     Procedure for Initiating Peer Review  

5.     Peer Review Procedure to be followed by the Peer Reviewer

6.     Compliance Review  

7.     Reviewer to adopt a combination of Compliance Approach and Substantive Approach 

8.     Procedure for Peer Review of a New unit

9.     Reporting by the Peer Reviewer

10.  Fees for Peer Review  

11.  Issuance of Peer Review Certificate 

12.  Validity of Peer Review Certificate 

13.  Duplicate/Amendment of Peer Review Certificate 

14.  Disciplinary Action against PU  

15.  Check List for submitting documents to PRB  

16.  Various action points 

16.1. Form 9 – Peer Review Report

16.2. Applicability of Annexure III 

16.3. Submission of DoC in Form 2 to the Practice Unit

16.4. Accompaniments with Peer Review Report

17.  Illustrative Time Schedule 

18.  Functions of the Peer Review Board Secretary and Secretariat

19.  What Peer Review Board can do on considering the report of the Peer Reviewer

19.1. Revocation of peer review certificate 

Chapter 5

Model Forms and Reports with illustrative submissio

1      Notice by Peer Reviewer for visiting office of the Practice Unit

2      Format for seeking additional information 

3      Preliminary Report

4      Peer Review Report – Form 9 

5      Form 1 – Application cum Questionnaire

Chapter 6

Illustrative Format of Quality Control Manual

Quality Control Manual                                                                                                                    

Preface                                                                                                                                                 

About this Manual                                                                                                                             

Important notices                                                                                                                               

Abbreviations used in the IQCM                                                                                                     

Abbreviations for key roles                                                                                                              

General Policy Statement                                                                                                                 

Mission Statement                                                                                                                             

Roles and Responsibilities of Partners and Staff                                                                         

1.     Leadership Responsibilities for Quality within the Firm                                              

2.     Relevant Ethical Requirements                                                                                       

3.     Acceptance and Continuance of Client Relationships and Specific Engagements               

5.     Engagement Performance                                                                                                

6.     Monitoring                                                                                                                           

Chapter 7

Code of Ethics

1.     Code of Ethics                                                                                                                            

2.     The Chartered Accountants Act, 1949                                                                                  

3.     Functions of Council (Section 15)                                                                                           

4.     Committees of the Council (Section 17)                                                                                

4.1  Functions of Executive Committee (Regulation 175 of the Chartered Accountants (Amendment) Regulations, 2008, w.e.f. 25-09-2008)                                                                                                              

4.2  Functions of Finance Committee (Regulation 176A of the Chartered Accountants (Amendment) Regulations, 2008, w.e.f. 25-09-2008)                                                                                                              

5.     Membership of ICAI                                                                                                                 

6.     Removal from the Register (Section 20)                                                                                

6.1 Cancellation of Certificate of Practice (The Chartered Accountants (Amendment) Regulations, 2008, w.e.f. 25-09-2008)                                                                                                                                               

7.     Other Services [Section 2(2)(iv)]                                                                                              

8.     Corporate Form of Practice                                                                                                      

9.     Director of a Company:                                                                                                            

10.  Disabilities [Section 8]                                                                                                               

11.  Certificate of Practice [Section 6]                                                                                           

12.  Members acting as Direct Selling Agents                                                                               

13.  Maintenance of Branch Offices [Section 27]                                                                       

14.  Professional Misconduct and Other Misconduct                                                                 

15.  Penalty for falsely claiming to be a member, etc. (Section 24)                                         

16.  Clarifications of ICAI as published in the publication “Code of Ethics Plus” and its Website   

16.1  Recent Decisions of Ethical Standards Board [ESB]                                                

17.  New Disciplinary Mechanism                                                                                                  

18.  Disciplinary Directorate (Section 21)                                                                                      

19.  Board of Discipline (Section 21A)                                                                                           

20.  Disciplinary Committee (Section 21B)                                                                                   

21.  Authority, Disciplinary Committee, Board of Discipline and Director (Discipline) to have powers of civil court (Section 21C)   

22.  Constitution of Appellate Authority (Section 22A)                                                             

23.  Term of office of Chairperson and members of Authority (Section 22B)                      

24.  Appeal to Authority (Section 22G)                                                                                         

25.  Quality Review Board (Section 28A to 28D of Chapter VIIA)                                         

26.  Schedules to the Chartered Accountants Act, 1949                                                            

FIRST SCHEDULE                                                                                                                           

SECOND SCHEDULE