Peer Review consists of two words i.e. peer and review.
The word 'peer' means a person in same standing. For example Mr. A and B are CA. They both are peers to each other.
The word 'review' means to re-examine and retrospective evaluation of the subject matter. In simple words , review means to inspect the work done by a CA Firm in current and past years.
Therefore the term 'Peer Review' means review of the work done by a CA Firm by another CA ( From now onwards will be called Reviewer).
Now a question may arise in your mind that who has appointed him to review the work ? The answer is a board setup by ICAI. ICAI has constituted a Peer Review Board. The board has maximum 12 members in which minimum 50% must be CA's. Remaining members can be outsourced but they must be expert in their relevant fields.
Now a further question will arise in your mind that why is ICAI through its Peer Review Board reviewing the work done by its own members ? The reason is that ICAI wants their member CA's to enhance their quality of work. Its primary objective is not to find the deficiencies in their work but to improve the quality of their work.
Now , as we know their are many CA forms in India it becomes next to impossible for ICAI to conduct reviews for each and every firm in India. Therefore it has done a filter on the services provided by CA's and selected only Assurance Services. It means that CA Firms who provides assurance services will come within the perimeter of review. Therefore if the firm does not provide assurance services and provides other services like filling GST Returns , IT Returns , Gives consultancy services , etc then it will not be within perimeter of review.
The peer review board has setup three levels viz L1 , L2 and L3. Assurance services are further divided among these levels. A CA Firm falling in L1 gets reviewed once in 3 years. Similarly in L2 and L3 , 4 and 5 years respectively.
Till now you have understood the meaning of Peer Review , Monitoring authority i.e. Peer review board , objectives of peer review and the criterion.
Now I will proceed further to tell you the peer review process and stages , what things are checked during peer review.
The word 'peer' means a person in same standing. For example Mr. A and B are CA. They both are peers to each other.
The word 'review' means to re-examine and retrospective evaluation of the subject matter. In simple words , review means to inspect the work done by a CA Firm in current and past years.
Therefore the term 'Peer Review' means review of the work done by a CA Firm by another CA ( From now onwards will be called Reviewer).
Now a question may arise in your mind that who has appointed him to review the work ? The answer is a board setup by ICAI. ICAI has constituted a Peer Review Board. The board has maximum 12 members in which minimum 50% must be CA's. Remaining members can be outsourced but they must be expert in their relevant fields.
Now a further question will arise in your mind that why is ICAI through its Peer Review Board reviewing the work done by its own members ? The reason is that ICAI wants their member CA's to enhance their quality of work. Its primary objective is not to find the deficiencies in their work but to improve the quality of their work.
Now , as we know their are many CA forms in India it becomes next to impossible for ICAI to conduct reviews for each and every firm in India. Therefore it has done a filter on the services provided by CA's and selected only Assurance Services. It means that CA Firms who provides assurance services will come within the perimeter of review. Therefore if the firm does not provide assurance services and provides other services like filling GST Returns , IT Returns , Gives consultancy services , etc then it will not be within perimeter of review.
The peer review board has setup three levels viz L1 , L2 and L3. Assurance services are further divided among these levels. A CA Firm falling in L1 gets reviewed once in 3 years. Similarly in L2 and L3 , 4 and 5 years respectively.
Till now you have understood the meaning of Peer Review , Monitoring authority i.e. Peer review board , objectives of peer review and the criterion.
Now I will proceed further to tell you the peer review process and stages , what things are checked during peer review.
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