ICAI releases Guidelines for conducting Distance/Remote/ online Peer Review

Institute of Chartered Accountants of India releases Guidelines for conducting Distance/Remote/ online Peer Review

Following extensive debate at its most recent meeting, the Peer Review Board has chosen to conduct distance/ remote/ online peer review. Following the pandemic of the last two years and the adoption of new audit procedures, the Board decided that it was finally time to implement remote peer review.

In general, no changes to the review process are expected when compared to the physical mode of review because the review purpose remains the same. It requires Reviewers (members of the profession) to guarantee that they have access to adequate audit evidence on which to base their opinions. The reviewer must ensure that the regulatory norms are followed, including the Standards on Auditing, and that the Standards on Auditing and/or any other mandatory guidelines provided by the ICAI are not diluted (in any way).

Peer Reviewers Should Take into Account:

• All discussions between the Practice unit and the Reviewers can be done via email rather than in person. For improved control, the reviewer and the Practice Unit may consider arranging such correspondence chronologically/date wise.
• When the Reviewer receives the Questionnaire from the Practice Unit (PU), he can provide the PU his sample list by e-mail instead of courier/post. At the mutual convenience of the PU and the reviewer, the Practice Unit can arrange to supply the data/documents required for conducting the review in soft copy format. The reviewer might also ask for remote access to the Practice Unit’s platform in order to keep track of and document the audit working papers. The reviewer can use electronic mode to go over the mechanisms/procedures and collect enough audit evidence to form an opinion.
• The fact that the Peer Review was done virtually should be noted in the section given for reporting the dates of the physical visit in the Report submitted to the Board.

It should be noted that the aforementioned principles do not in any way weaken the framework within which the review is carried out, and they should be followed to the letter and spirit. Furthermore, only the Peer Reviewer and/or one trained Assistant who may assist the Peer Reviewer in performing the Review shall conduct the Peer Review.

In the event that any issues arise when conducting remote peer review, the Board will provide all necessary assistance. We can be reached at [email protected].