ICAI Extends Peer Review Deadline for PSB Bank Branch Audit Firms to December 31, 2026:

The Institute of Chartered Accountants of India (ICAI) has extended the deadline for mandatory peer review for bank branch audit firms to December 31, 2026, for all component auditors handling public sector bank (PSB) branch audits from January 2027. With this move, the institute has also set a target to dispose of all disciplinary cases within 365 days (one year). Principal auditors of PSBs are already covered under the existing peer review framework.

About 15,000 audit firms are anticipated to fall under the scope of the aforementioned ICAI's move. Presently, the institute has over 1,000 peer reviewers.

Peer review is currently mandatory for firms conducting statutory audits of listed companies, certain large unlisted public companies, public-interest entities, and entities that have raised more than Rs 50 crore from the public, banks or financial institutions. It also applies to firms providing attestation services with three or more partners.

ICAI has also shifted the peer review process from a manual system to a web portal, covering applications through certificate issuance. ICAI President Prasanna Kumar D said the institute has increased its capacity significantly. He said that while around 4,000-5,000 firms were earlier certified annually, the new system could enable 30,000-40,000 Chartered Accountant (CA) firms to undergo peer review in a year.

Meanwhile, ICAI is targeting faster disposal of disciplinary cases against chartered accountants. Around 400 cases are currently pending before disciplinary benches after a prima facie opinion has been formed and accepted. The institute aims to reduce the disposal time from the current two to three years to 365 days.

The disciplinary process begins with a complaint or information received by ICAI. The Directorate of Discipline examines the matter, obtains responses from the concerned parties and prepares a prima facie opinion. The matter is then considered by the Board of Discipline or the Disciplinary Committee.