PEER REVIEW PROCESS AN EASY UNDERSTANDING

Summary

This video provides a comprehensive overview of the peer review process, covering the essential steps, eligibility criteria, responsibilities of peer reviewers, and the procedures involved in selecting practice units for review. It outlines the qualifications required for peer reviewers, the disqualification criteria, and the process of gathering necessary information from practice units. The script also details the selection of audit samples, compliance verification, and the reporting process. Peer reviewers must ensure thorough evaluation and maintain independence, with a structured approach to report findings, rectify deficiencies, and submit final assessments.

Takeaways

• 😀 A peer reviewer must meet specific eligibility criteria, such as having a minimum of 10 years of practice for level one reviews and 7 years for level two reviews.
• 😀 Reviewers must undergo proper training and pass an examination conducted by the Peer Review Board before being appointed.
• 😀 Peer reviewers must adhere to confidentiality and declare their independence from the practice unit they are reviewing.
• 😀 If a reviewer has any conflict of interest or past associations with a practice unit, they must decline to accept the peer review appointment.
• 😀 Practice units must submit detailed documentation about their operations, services, clients, and any ongoing proceedings to facilitate the review.
• 😀 The selection of audit or assurance files for the review is at the sole discretion of the peer reviewer, based on factors like the practice unit's size and industry.
• 😀 The reviewer may involve a qualified assistant, but this must be disclosed and agreed upon by the Peer Review Board and the practice unit.
• 😀 Peer review visits to practice units are mandatory when their turnover from assurance services exceeds 25 lakhs, especially if there are multiple branches.
• 😀 The peer review process is expected to be completed within 90 days of notification, ensuring timely feedback and action.
• 😀 In case deficiencies are found, the reviewer issues a preliminary report, allowing the practice unit to rectify the issues before a final report is submitted.

Q & A

What is the first step in the peer review process?

The first step is the field review process, where the peer reviewer is introduced to the peer review procedures and plans how to conduct the review.

Who is eligible to be appointed as a peer reviewer?

To be eligible, a peer reviewer must fulfill specific requirements such as having a minimum number of years in practice, completing necessary training, passing the peer review examination, and adhering to certain confidentiality agreements.

What are the experience requirements for peer reviewers at different levels?

To conduct a Level 1 peer review, the reviewer must have at least 10 years of practice. For Level 2, a minimum of 7 years of practice is required. Additional criteria apply based on employment history and training.

What are the disqualifications for being a peer reviewer?

A person is disqualified from being a peer reviewer if they have any pending disciplinary actions, past misconduct, or are involved in any conflict of interest with the practice unit being reviewed.

Can a peer reviewer accept assistance from another professional?

Yes, a peer reviewer can accept assistance from a qualified assistant, such as another chartered accountant, but the assistant must also meet the eligibility criteria and sign a confidentiality declaration.

What information must a practice unit provide to the peer reviewer?

The practice unit must submit detailed information including a list of assurance services, client names or codes, policies and procedures, and any ongoing legal proceedings involving the practice.

How is the sample size for the peer review determined?

The sample size is determined based on factors such as the size of the practice unit, the nature of its operations, the number of branches, and the number of audit partners.

What is the timeline for completing the peer review process?

The peer review process must be completed within 90 days from the date of notification, after which a report is submitted to the board.

What should happen if a peer reviewer is not satisfied with the practice unit's procedures?

If the reviewer is not satisfied, they will issue a preliminary report highlighting the deficiencies. The practice unit must address the issues and submit a rectification report within 15 days.

What happens if the practice unit does not comply with the reviewer's findings?

If the practice unit does not rectify the deficiencies, the peer reviewer may submit a final report to the board, explaining the non-compliance and any unresolved issues.