Handbook on PEER REVIEW of Practice Units

Book Details

DETAILED CONTENTS

Bharat?	5
Preface	7
Contents at a glance	13

CHAPTER II

Introduction

CHAPTER 2 Applicability of Peer Review and its Mandate Roll Out in Phases

1. Submission of periodic limited review and audit reports by listed entities	3
2. Eligibility requirements for an initial public offer on SME Exchange	4
3. Rotation of audit partners	5
3.1. Peer review applicability of sole practitioner/proprietorship	5
4. Peer Review Mandate - Roll Out Phases for various Practice Units	5
4.1. Deferment of second phase of Peer Review Mandate	7
4.2. Peer Review applicability coincides with classes of companies and bodies corporate governed by NFRA	8
4.3. Certificates issued by Peer Review Board to Practice Units without end date	9

CHAPTER 3 How to become Peer Reviewer

1. Peer Reviewer needs to be member in practice	11
2. Ineligibility	12
3. Professional association with the Practice Unit 12
3.1. Cooling off period before and after appointment as peer	�
3.2. Independence and conflict of interest	�
3.3. Confidentiality	12
4. raining and Test for Peer Reviewers	13
4.1. Empanelment remains in force for three years	�
5. Appointment of Peer Reviewer and his obligations	13
5.1. Can any assistant be appointed for conducting peer review	14
5.2. Obligations	14

CHAPTER 4 Peer Review Process

1. Objective	16
1.1. Technical, Professional and Ethical Standards	16
1.2. Technical Guides, Practice Manuals, Studies and Other Papers Published by AASB have no authority of the Council attached to them	17
2. Coverage of Peer Review	17
2.1. Elements to be covered in peer review to include Standards,Reporting Quality, AQMM, ICAI Guidelines and Directions,Training programmes, Articleship engagements, etc.: Guideline 4(4) provides that the Peer Reviewer shall cover:	17
2.2. Practice Unit having branch office(s)	18
2.3. Sample checking by peer reviewer and criteria thereof	18
2.4. Whether assurance engagements which have been subjected to any Regulatory Review should be selected in sampling	19
2.5. Minimum sample size and consequent validity of Peer Review Certificate	19
2.6. Suggested Format for List of Samples Selected to be submitted to the Board	20
3. Assurance Engagements to be covered by the Peer Reviewer during the peer review process	21
4. Procedure for Initiating Peer Review	23
5. Peer Review Procedure to be followed by the Peer Reviewer	23
6. Compliance Review	24
7. Reviewer to adopt a combination of Compliance Approach and Substantive Approach	24
8. Procedure for Peer Review of a New unit	24
9. Reporting by the Peer Reviewer	25
10. Fees for Peer Review	26
11. Issuance of Peer Review Certificate	28
12. Validity of Peer Review Certificate	29
13. Duplicate/Amendment of Peer Review Certificate	29
14. Disciplinary Action against PU	30
15. Check List for submitting documents to PRB	30
16. Various action points	33
16.1. Form 9 – Peer Review Report	33
16.2. Applicability of Annexure III	33
16.3. Submission of DoC in Form 2 to the Practice Unit	33
16.4. Accompaniments with Peer Review Report	33
17. Illustrative Time Schedule	34
18. Functions of the Peer Review Board Secretary and Secretariat	37
19. What Peer Review Board can do on considering the report of the Peer Reviewer	38
19.1. Revocation of peer review certificate	39

CHAPTER 5 Model Forms and Reports with illustrative submissions

1 Notice by Peer Reviewer for visiting office of the Practice Unit	40
2 Format for seeking additional information	41
3 Preliminary Report	42
4 Peer Review Report – Form 9	44
5 Form 1 – Application cum Questionnaire	83

CHAPTER 6 Illustrative Format of Quality Control Manual

Quality Control Manual	138
Preface	138
About this Manual	138
Important notices	138
Abbreviations used in the IQCM	139
Abbreviations for key roles	139
General Policy Statement	140
Mission Statement	140
Roles and Responsibilities of Partners and Staff	140
1. Leadership Responsibilities for Quality within the Firm	141
2. Relevant Ethical Requirements	145
3. Acceptance and Continuance of Client Relationships and Specific Engagements	152
5. Engagement Performance	165
6. Monitoring	175

CHAPTER 7 Code of Ethics

1. Code of Ethics	185
2. The Chartered Accountants Act, 1949	186
3. Functions of Council (Section 15)	186
4. Committees of the Council (Section 17)	187
4.1 Functions of Executive Committee (Regulation 175 of the Chartered Accountants (Amendment) Regulations, 2008, w.e.f. 25-09-2008)	188
4.2 Functions of Finance Committee (Regulation 176A of the Chartered Accountants (Amendment) Regulations, 2008, w.e.f. 25-09-2008)	188
5. Membership of ICAI	189
6. Removal from the Register (Section 20)	190
6.1 Cancellation of Certificate of Practice (The Chartered Accountants(Amendment) Regulations, 2008, w.e.f. 25-09-2008)	190
7. Other Services [Section 2(2)(iv)]	190
8. Corporate Form of Practice	193
9. Director of a Company:	193
10. Disabilities [Section 8]	194
11. Certificate of Practice [Section 6]	195
12. Members acting as Direct Selling Agents	196
13. Maintenance of Branch Offices [Section 27]	196
14. Professional Misconduct and Other Misconduct	197
15. Penalty for falsely claiming to be a member, etc. (Section 24)	198
16. Clarifications of ICAI as published in the publication “Code of Ethics Plus� and its Website	199
16.1 Recent Decisions of Ethical Standards Board [ESB]	202
17. New Disciplinary Mechanism	206
18. Disciplinary Directorate (Section 21)	207
19. Board of Discipline (Section 21A)	207
20. Disciplinary Committee (Section 21B)	208
21. Authority, Disciplinary Committee, Board of Discipline and Director(Discipline) to have powers of civil court (Section 21C)	208
22. Constitution of Appellate Authority (Section 22A)	209
23. Term of office of Chairperson and members of Authority (Section 22B)	209
24. Appeal to Authority (Section 22G)	209
25. Quality Review Board (Section 28A to 28D of Chapter VIIA)	210
26. Schedules to the Chartered Accountants Act, 1949	211
FIRST SCHEDULE	212
SECOND SCHEDULE	228