The peer review mechanism was established by the Council of the ICAI with the issuance of the Statement on Peer Review in March, 2002. Peer review will help in reassuring the stakeholders and the society at large that the profession is conscious of its responsibilities and strives at its best to ensure that the highest standards are observed by all the practising members rendering audit and attestation services to the society. It is to be noted that peer review report has nothing to do with the disciplinary or other regulatory mechanism. Under peer review one chartered accountant will examine the other chartered accountant to judge the quality of attestation work performed by them. The former is known as Reviewer and the latter is known as practice unit/ audit firm.
The main objective of peer review is to ensure that in carrying out their professional attestation service assignments, the members of the Institute:
(i) comply with the technical standards laid down by the ICAI;
(ii) have in place proper systems, including documentation systems, for maintaining the quality of the attestation services they perform.
The peer review is administered by Peer Review Board (PRB) constituted by ICAI. The Reviewer shall submit his report to PRB and necessary follow up action may be taken by PRB on such report.