Peer Review Flashcards
Objectives of peer review
Ensure members comply with PET issued by Institute
Ensure that the member has a proper system including documentation for maintaining the quality of assurance services
Adherence to statutory and regulatory requirements
Identify and address non compliance quality control standards
Focus or scope of peer review
Compliance with PET
Quality of reporting
Systems and procedures
Training program for staff availability of appropriate infrastructure
Compliance with direction and guidelines issued by council to members
Compliance with direction and guidelines issues by council related to article assistant
Technical, professional and ethical standards
Accounting standard
Standards issued by ICAI ( engagement standards, statements, guidance notes, SIA, statement of quality control
AFRF,SA,SAE,SQC and guidance notes issued by ICAI
Provisions
Assurance services do not include
MR FESTED
Management consultancy services
Representation before various authorities
Engagement for compilation of FS
Expert witness testifying
Prepare tax returns
Expert opinion on accounting or any other matter
Due diligence
Suo moto peer review . Then in how much days will board reply
30 days
Constitution of peer review board
Max 12 members and 50% should be council member of ICAI remaining can be any Person with High integrity and knowledge but the chairman and vice chairman must be nay member who is also a council member in ICAI. Term should be just 1 year casual vacancies shall be filled by council. Member of disciplinary committee or any other disciplinary committee is disqualified to be a member of PRB
Eligibility to be a reviewer
Be member with at least 10 years of experience in practice
Is in Practice as per CA act,1949
Should have undergone the requisite training as Prescribed by the board
Should have furnished a declaration ad prescribed by the board at the time of acceptance of peer review appointment
Should have furnish declaration of confidentiality as prescribed by the board
Should have conducted audit of level 1 entities of at least 7 years to be eligible for conduct of review of level 1 entities
SHOULD NOT HAVE
disciplinary action proceeding pending against him
Convicted guilty by council or disciplinary board or committee
Been convicted in competent court of moral turpitude and punishable with transportation or imprisonment
Conflict of interest
Steps wise approach which maybe adopted by REVIEWER
Understanding of engagement letter
Number of assurance engagement to be selected based on questionnaire received
Policies and procedures of a firm for accepting particular engagement
Combination of compliance and substantive procedures
While reviewing records may consider - significant problem arose during the audit is solved, adequate audit evidence, significant decision properly documented
Short note on planning stage of peer review
Selection of PU by the board and 3 reviewers shall be recommended
PU select one out of three reviewers and intimate board within 7 days
The board shall intimate reviewer so selected to get consent within 7 days
On intimation by the board of the reviewer’s consent PU shall within 15 days furnish - duly filled in questionnaire, complete list of assurance services and fees charged, policies and procedures in relation with fundamental principles, details of any proceedings against PU or any of his partners related to deficiency in conduct of attest function by them during the period of 3 years preceding the review
The reviewer shall select sample within 15 days of receiving the information
The reviewer then shall plan on site visit and should inform PU at least 15 days before such visit
Short note on execution stage of peer review
Begins with initial meeting and end with review of records it should not exceed beyond 7 working days
Initial meeting to judging with the accuracy of questionnaire
Compliance review of IMOSO - independence, maintenance of professional skills and standards, outside consultation, staff selection & supervision & office administration
Review of records with combination of compliance and substantive approach
Short note on reporting stage of peer review
Preliminary report to reviewer if the systems and procedures of PU have been found deficient or where any non compliance is being noticed
PU to send representation within 15 days from receipt of preliminary report from reviewer
If reviewer is satisfied then it will submit the unmodified report to the board with the preliminary report, response by practice unit and manner in which response is BIENG dealt with
If not satisfied then modified report then the board shall order follow on review after a period of one year from the date of issue of ,oxidized report or it may reduce the period of 1 year but not less than 6 months
While process of peer review should be completed within
90 days
