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HANDBOOK ON PEER REVIEW
FORMS
Peer Review Board

The Institute of Chartered Accountants of India
(Set up by an Act of Parliament)
New Delhi
Foreword
The Peer Review mechanism was introduced by the Council of the Institute of
Chartered Accountants of India (ICAI) with the setting up of the Peer Review
Board in March 2002. Through this endeavor, the Council of ICAI aims to ensure
adherence to various technical Standards issued by ICAI from time to time. The
Board is progressing satisfactorily since inception and is continuously providing
guidance to the members to enhance the efficiency of assurance services
rendered by them.
The objective of the Handbook on Peer Review Forms is to provide guidance to

the Reviewers as well as the Practice Units on the applicability of various Forms
mentioned in the Peer Review Guidelines. In order to streamline the various
correspondences between the Peer Reviewer, the Practice Unit and the Board,
ten Forms have been introduced which form part of the ‘Peer Review Guidelines’
and the Handbook is bringing all these Forms together. The Handbook also
provides inputs to Practice Units and to Peer Reviewers for seamless
accomplishment of the Peer Review process.
My sincere appreciation for the efforts of CA. Chandrashekhar Vasant Chitale,

Chairman, CA. Anuj Goyal, Vice Chairman and all members of the Peer Review
Board of ICAI in bringing out this Handbook.
I am sure that the Handbook will be immensely beneficial for the Practice Units
as well as the Reviewers to guide them efficiently through the Peer Review
process.
New Delhi CA. (Dr.) Debashis Mitra

January 2023 President, ICAI
Preface
Establishment of the Peer Review Board in 2002 has been with an objective
of enabling review of professional, technical, and ethical practices while
discharging assurance engagements. Peer Review mechanism is now
articulated and understood by the stakeholders. Post gaining power to issue
guidelines under newly inserted section 15(2)(fa) in the Chartered
Accountants Act, 2022 has been entrusted with the Council of the Institute.
The Council has recently prescribed the Peer Review Guidelines in exercise
of these powers.
The Peer Review Guidelines have been notified. These Guidelines state and
prescribe procedure for the peer review process. There are ten different
forms prescribed under these Guidelines, which provide prescribed formats
for interaction between the Board and the Practice Units and Peer
Reviewers, inter se.
The Handbook on Peer Review Forms is intended to provide information to

the Practice Units and the Reviewers guiding on the applicability of various
forms and compilation of the same. Since applicability of the Peer Review
Guidelines, 2022 the practice unit has to submit Form 1 i.e. the application
cum Questionnaire to the Board for initiation of Peer Review process.
Practice Units were seeking clarifications while filling the questionnaire and
for different procedures. With this handbook, an effort has been made by the
Board to provide elucidation to the Practice Units and the Peer Reviewers as
to forms prescribed for use on various occasions and further how to fill up the
questionnaire and the forms.
I am sure that the process of peer review shall be seamless with adoption of
the new Guidelines and this companion to help out in initiation and execution
of any process.
I wish to place my sincere thanks to CA. (Dr.) Debashis Mitra, President,

ICAI and CA. Aniket S. Talati, Vice President, ICAI for their invaluable
guidance & support to the activities befitting Peer Review Board.
I take this opportunity to thank CA. Anuj Goyal, Vice Chairman of the Board
for his support. I appreciate other members of the Peer Review Board CA.
Prakash Sharma, CA. Umesh Sharma, CA. Ranjeet Kumar Agarwal, CA.
Charanjot Singh Nanda, CA. Dayaniwas Sharma and CA. Sridhar Muppala
for their active participation in bringing out this publication.
I also note CA Nidhi Singh, Secretary to the Peer Review Board, CA Nikhil
Singhal and other Officers of the Peer Review Board who have provided
inputs, devoted their valuable time and put in efforts to bring this Handbook.
I sincerely hope that this handbook would be immensely useful to the Peer
Reviewers as well as the Practice Units.
New Delhi CA Chandrashekhar Vasant Chitale

January 2023 Chairman, Peer Review Board, ICAI
Acknowledgement
The Peer Review Board of ICAI acknowledge the contribution made by the
following members for developing the publication namely Handbook on Peer
Review Forms. We place on record our gratitude for their contribution in
enrichment of knowledge of the members:
1. CA. Milan Mody
2. CA. Atul Shah
3. CA. Murtuza Vajihi
4. CA. Manish Sampat
5. CA. N. Jayendran
6. CA. Gautam Shah
7. CA. Sameer Laddha
8. CA. Hemant Godse
9. CA. Kusai Esoofbhai Goawala
Contents
Introduction 1
Form 1 Application cum Questionnaire to be submitted by the
Practice Unit 2
Form 2 Acceptance cum Declaration of Confidentiality to be
Submitted to the Practice Unit 108
Form 3 Application cum Declaration for Empanelment as a
Peer Reviewer 112
Form 4 Declaration Form to be submitted by Board members and
Secretariat 118
Form 5 Notice by Peer Reviewer for visiting the office of the
Practice Unit 120
Form 6 Format for seeking additional information from the Practice
Unit by the Reviewer 122
Form 7 Joint application to be made by PU and RE for seeking
additional time for completion of Peer Review process 124
Form 8 Letter seeking extension to the validity of Peer Review
Certificate 126
Form 9 Letter for submission of report by the Peer Reviewer to the
Peer Review Board 128
Form 10 Notice to be given to the Practice Unit by the Board in case
of revocation of Peer Review Certificate 131
INTRODUCTION
The Peer Review Guidelines 2022 have been prescribed and made
applicable by the Council w.e.f. 1st October 2022 in terms of the powers
conferred by Section 15(2))(fa) of the Chartered Accountants Act 2022. The
following ten new forms have been introduced which provide a prescribed
format for correspondence between the Board and the Practice Units as well
as any mutual correspondence to be done by the Practice Units with the
reviewers or vice versa.
Form 1 Application cum Questionnaire to be submitted by the

Practice Unit
Form 2 Acceptance cum Declaration of Confidentiality to be
Submitted to the Practice Unit
Form 3 Application cum Declaration for Empanelment as a Peer
Reviewer
Form 4 Declaration Form to be submitted by Board members and
Secretariat
Form 5 Notice by Peer Reviewer for visiting the office of the
Practice Unit
Form 6 Format for seeking additional information from the
Practice Unit by the Reviewer
Form 7 Joint application to be made by PU and RE for seeking
additional time for completion of Peer Review process
Form 8 Letter seeking extension to the validity of Peer Review
Certificate
Form 9 Letter for submission of report by the Peer Reviewer to
the Peer Review Board
Form 10 Notice to be given to the Practice Unit by the Board in
case of revocation of Peer Review Certificate
Form 1
Application cum Questionnaire to be
submitted By Practice Unit
As per Clause 6 of the Peer Review Guidelines 2022, Practice Units which
desire to get Peer Reviewed shall make an application for Peer Review in the
Application cum Questionnaire in Form 1. Form 1 is divided into two parts-
the first part is the application in which the Practice Unit has to apply for Peer
Review. Prior to the introduction of Guidelines, the Practice units were
required to submit a declaration with the Board to get itself Peer Reviewed.
The second part is the Questionnaire which is divided into three different
sections- Part A; Part B and Part C. Under Part A the Practice Unit has to
provide its profile. Particulars regarding constitution of the Practice Unit;
Chartered Accountants Employed; Details of Other Employees; branches etc
should pertain to the Peer Review Period and should tally with ICAI Firm
card. Part B of the Questionnaire deal with various aspects of the quality
controls within the Practice Unit like policies and procedures addressing
leadership responsibility, ethical requirements, acceptance and continuance
of client relationship, human resource, engagement performance and
monitoring etc. Under Part C of the questionnaire the Practice Unit has to
provide self-evaluation scores for each clause/ sub-clause using AQMMv1.0.
Part C is Mandatory Applicable w.e.f. 1st April 2023 for Practice units
conducting statutory audit of listed entities (other than branches of banks and
Insurance companies).
Form 1
FORM 1
APPLICATION CUM QUESTIONNAIRE TO BE SUBMITTED BY
PRACTICE UNIT
[As per Clause 6(1) & 6 (2) of the Peer Review Guidelines 2022]
The Secretary, Peer Review Board,

The Institute of Chartered Accountants of India,
ICAI Bhawan,
Post Box No. 7100,
Indraprastha Marg, New Delhi – 110002
APPLICATION
Dear Sir,
1. Our Firm ………………………………………………………………...
(Name of practice unit as per ICAI Records); FRN/ M. No. …. (Firm
Registration Number/ Mem. No. as per ICAI records) would like to
apply for Peer Review for the period from....……to………. (three
preceding financial years from the date of application). We have gone
through the Peer Review Guidelines 2022 hosted at …. And undertake
to abide by the same.
2. I/We hereby declare that my/our firm is applying for Peer Review (Tick
the applicable clause):
(i) As it is Mandatory by: ICAI Any other Regulator (please
specify)
(ii) Voluntarily:
(iii) As a special case Review initiated by the Board:
(iv) New Unit:
(v) As per decision of the Board:
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Handbook on Peer Review Forms
3. I/We hereby declare that my/our firm has signed reports pertaining to
the following assurance services during the period under review:
S. Type of Assurance Major type of Client

No. service rendered (please specify) (e.g. Banks;
Insurance Company;
Manufacturing; Individuals;
Trading; any other)
1 Central Statutory Audit
2 Statutory Audit
3 Internal Audit
4 Tax Audit
5 Concurrent Audit
6 Certification work
7 Any other, please specify
4. I / We hereby declare that my/ our firm has conducted/ has not
conducted Statutory Audit of enterprises Listed in India or abroad as
defined under SEBI LODR, 2015 during the Review Period.
5. Option for appointment of Reviewer: (Tick appropriate option)
(i) Same City
(ii) From outside City
(iii) Either option (i) or (ii)
(iv) Preferred City in case of option (ii) ______________________

6. Mail Id for communication with the Practice unit ……….
7. Address for sending the Peer Review Certificate
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………
Further Information to be submitted by New Unit
8. Tick the applicable clause or mention N.A. as the case may be:
4
Form 1
(i) CA ……….., M.No. [………] , partner of my firm is /was a

partner/ proprietor of the firm …………………..(name and FRN
of firm as per ICAI records) having a Peer Review Certificate
No. (………………) that is valid from……………..
till………………….
(ii) I am / was a partner/ proprietor of the firm
…………………..(name and FRN of firm as per ICAI records)
having a Peer Review Certificate No. (………………) that is valid
from…………….. till………………….
(iii) CA……………..(M. N………………………….), an employee of
my firm who is a Chartered Accountant, is / was a partner/
proprietor of the firm …………………..(name and FRN of firm as
per ICAI records) having a Peer Review Certificate No.
(………………) that is valid from…………….. till………………….
(iv) CA ……….., M.No. [………] ,partner of my firm …………… , is
an Empanelled Peer Reviewer who has qualified the test
organised by the Board.
(v) I, CA ……………….., M. No……………………….am an
Empanelled Peer Reviewer who has qualified the test organised
by the Board.
9. Policies, procedures and infrastructure of my firm is in conformity with
the Standards on Quality Control i.e. SQC-1 and
10. I wish to undertake audit of listed entity and further declare that: (Fill
as applicable or else mention N.A.)
(i) CA ……….. , M.No. [………] ,partner of my firm has carried out
audit of Listed company in last three years.
(ii) I, CA…………., M. No. ……………… ( in case of proprietorship
firm) have carried out audit of Listed company in last three
years.
11. The Practice Unit nominates its Partner CA……………….. for Peer
Review process. His Mobile No. is…………………………………and E-
MAIL id is…………………………..
12. Annexure: Questionnaire
• I hereby Declare that the details furnished above are true and
correct as borne out by the facts to the best of my knowledge
and belief.
5
• I understand that the Peer Review Certificate, issued on the

basis of the report submitted by the reviewer does not provide
immunity from Disciplinary/ legal proceedings or actions initiated
against Practice Unit or its partners/ employees.
• I undertake to pay the fee to the Peer Reviewer within 7 days
from the date of receipt of the invoice from the Peer Reviewer.
• I further undertake and agree that the certificate can be revoked
for any of the reason stated in the Peer Review Guidelines
Signature
Name of Proprietor/Partner/
individual Practicing in own name:
Membership No. of the Signatory
Date:
6
Form 1
Annexure
QUESTIONNAIRE
(PART A - PROFILE OF PRACTICE UNIT (PU)
1. Name of the Practice Unit:
2. Peer Review of HO Branch

3. Address (As per ICAI records) ________________________________
________________________________________________________
________________________________________________________
4. Email ID and website of PU __________________________________
5. Status: Partnership Proprietorship
Limited Liability Partnership Practicing in individual name
6. Date of establishment of the PU: d d m m y y y y
7. Firm Registration Number:

(Membership No. in case of an individual practicing in own name)
8. Is there any networking firm and if yes, please provide
(i) Name of network: _____________________________________
(ii) Since when the Networking is entered into: ________________
(iii) Is there any exit from the Networking recently: _______. And if
Yes, what is the reason or such exit: ____________________
9. Period of assurance service under review
from: d d m m y y y y To: d d m m y y y y
10. Contact person of PU for Peer Review (along with Mobile No. and
Email id) _________________________________________________
________________________________________________________
________________________________________________________
11. Particulars about the constitution of the PU during the period under
review (as per Form 18 filled with the ICAI). Is there assurance service
7
like Statutory audit, tax audit, Taxation etc. headed by different

partners, if yes details to be provided in the below table:
Name of Membership Association Any Post Professional Predominant Details of

sole- no. of sole- with Practice Qualification experience in function (e.g. Changes
practitioner/ practitioner/ unit or practice audit, tax,
Joined Left
sole- sole- Certificate consulting)
(in years) (Year) (Year)
proprietor/ proprietor/ course
partner partner pursued
within or
outside ICAI.
12. Particulars of Chartered Accountants / Employed / Paid Assistant or

Consultants as on <______>:(last date of block period of peer review)
Name (s) Membership no. Association with Experience (in

the practice unit years)
(in years)
13. Details of Other Employees as on <______>:(last date of block period

of peer review)
Particulars Number
(a) Semi-Qualified Assistants
(b) Articled Assistants
(c) Administrative Staff
(d) Others
14. If the PU has any branch offices, furnish the following details of
member in charge and number of staff
8
Form 1
S.No Member in No. of staff Membership Address Whether

Charge No assurance
services
rendered
15. How is the control procedure followed by the Branch/es. And whether
any periodic sample testing of clients handled by branch/es is done by
HO?
________________________________________________________
________________________________________________________
16. Gross receipts of the Practice Unit [both H.O. and branch(es)] as per
books of accounts from assurance functions for the period under
review. In case of centralized billing the branch turnover may be added
with HO otherwise separate figures (Rs. in Lakhs) to be given:
Financial Year Head Office Branch -- Branch -- Branch --
OR
Total Gross receipts of the Practice Unit [both H.O. and branch(es)] as
per books of accounts for the period under review. In case of
centralized billing the branch turnover may be added with HO
otherwise separate figures (Rs. in Lakhs) to be given:
Financial Year Head Office Branch -- Branch -- Branch --
9
17. Concentration: Furnish details where professional fees from any client
exceed 15% of the PU’s total gross receipts:
Name or code Type of Service % of PU’s total Financial Year
number of the (Assurance / Non gross receipts
Client Assurance)
18. Whether PU has ever undertaken self-evaluation as per ‘Digital

Competency Maturity Model-2? ___________________________If
yes, when_____________?
19. Has the PU been subjected to a Peer Review in the past?
___________.If yes, the Certificate number issued by the
Board_____________________.
20. Whether any Partner/Employee of Practice Unit has been found guilty
by the Disciplinary Committee in the past 3 years in any capacity.
Name of Membership No. Case No. Whether found
Partner/Employee guilty YES/NO
21. Whether any client obtained through the process of

tendering?____________________
22. Please provide details of assurance clients where report/certificate has
been signed during the period under review, financial year wise and
branch wise as per Annexure A (Please use additional sheet for year-
wise details):
10
Form 1
ANNEXURE A
Note: The clients obtained through tender may please be marked with
the word tender in bracket.
Sr. Catego Na Na Type of Engagement* Whether Turn Borrow Net
No ry me me Engagem over ing Rs. wor
. of of of ent Rs. Lakhs th
Client Bra Sig Quality Lakh Rs.
(Name nch nin review s Lak
or /HO g done? hs
code of Par
of PU tner
client)
FY FY…. FY….
….
A Any Bank or Insurance Company
A1
A2
A3
B Non Banking Financial Companies having public deposits of Rs.100 crore or above.
B1
B2
B3
Central or State Public Sector Undertakings and Central Cooperative Societies having
C
turnover exceeding Rs.250 crore or net worth exceeding Rs.5 crores.
C1
C2
C3
Enterprise which is listed in India or Abroad as defined under SEBI (Listing Obligations
D
and Disclosure Requirements) Regulations, 2015.
D1
D2
D3
E Asset Management Companies or Mutual Funds.
E1
E2
11
E3
F Entities preparing the financial statements as per Ind AS.
F1
F2
F3
G Any Body corporate including trusts which are covered under public interest entities.
G1
G2
G3
Entities which have raised funds from public or banks or financial institutions or by
H way of donations/contributions over Fifty Crores rupees during the period under
review.
H1
H2
H3
Entities which have been funded by Central and / or State Government(s) schemes of
I
over Rs.50 crores during the period under review.
I1
I2
I3
Entities having Net Worth of more than Rs.100 Crores rupees or having turnover of
J
Rs.250 crore or above during the period under review.
J1
J2
J3
K Any other
K1
K2
K3
*Type of engagement (1) Central Statutory Audit (CSA), (2) Statutory

Audit (SA), (3) Tax Audit (TA), (4) Internal Audit (IA), (5) Others
(Concurrent, GST, certification work etc.)
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Form 1
Note: Type of assurance service engagements include Central Statutory

Audit, Statutory Audit, Tax Audit, GST Audit, Internal Audit,
Certification work but does not include:
(i) Management consultancy Engagements;
(ii) Representation before various authorities;
(iii) Engagements to prepare tax return or advising clients in taxation
matter;
(iv) Engagements for the compilation of financial statement;
(v) Engagements solely to assist the client in preparing, compiling or
collating information other than financial statement;
(vi) Testifying as an expert witness;
(vii) Providing expert opinion on points of principle, such as Accounting
Standards or the applicability of certain laws, on the basis of facts
provided by the client;
(viii) Engagements for due diligence and
(ix) Any other service rendered or function performed by practitioner not
prescribed by the Council to be ‘Assurance Engagement’.
13
PART B
GENERAL CONTROLS (Based on SQC 1)
(Not applicable for New Units)
The Standard on Quality Control i.e. SQC-1 has been made mandatory by
ICAI on and from (1st April 2009). Hence, the PU is required to establish a
system of ‘Quality Control’, designed to provide reasonable assurance that
the PU and its personnel comply with professional standards; regulatory,
legal and ethical requirements.
Broadly, PU system of quality control should include policies and procedures
addressing leadership responsibility, ethical requirements, acceptance and
continuance of client relationship, Human Resources, Engagement
Performance and Monitoring etc. A Questionnaire based on these criteria is
given in Part B(I); B(II); B(III); B(IV); B(V) and B(VI) herein below.
[Notes:
(i) The application of SQC-1 will depend on various factors such as the
size and operating characteristics of the PU and whether it is part of
network.]
(ii) Refer to implementation Guide to SQC1:
https://resource.cdn.icai.org/20913frpubcd_aasb1.pdf
PART B (I)
LEADERSHIP RESPONSIBILITIES FOR QUALITY WITHIN THE FIRM
S.No. Policies and Procedures Remarks/Yes/No/Na
1 Does the PU have a Quality Control Manual in
place?
2 Whom has the firm entrusted with the
responsibility for developing, implementing,
and operating the Firm’s QC system?
3 Who is ultimately responsible for ensuring the
effectiveness of the firm’s System of QC and
setting a tone that emphasizes the importance
of quality?
4 Whether the same has been formally
documented and agreed upon by partners?
5 (i) Who evaluates the client relationships and
specific engagements to ensure that
commercial considerations do not override the
objectives of the system of QC?
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Form 1

5 (ii) How often is this evaluation carried out?
6 What is the procedure followed by firm to
ensure that fee considerations and scope of
services do not infringe upon the quality of
work and proper documentation as envisaged
in SQC 1 is maintained?
7 (i) How and when are the Firm’s QC policies and
procedures shared with the personnel working
in the Firm?
7 (ii) Whether refresher sessions are taken

periodically?
8 Does the firm’s compensation system provide
incentives and advancement to the personnel
who demonstrate quality of work and
compliance with professional standards?
9 Has the PU come across any instances where
the QC was overridden?
10 Which of the following resources have the firm
deployed for developing, implementing and
maintaining Firm’s QC policies and
procedures:
(i) Manpower
(ii) IT tools
(iii) Library
(iv) Regular review mechanism etc.
15
PART B (II)
ETHICAL REQUIREMENTS
1 Which of the following procedures does the
PU have in place for ensuring that the
personnel adhere to ethical requirements
those contained in the code:
(i) Designated Independence and Ethics Partner
who is responsible for all aspects of
independence and ethics of the PUs partners
and professional staff
(ii) If answer to (i) above is yes, name of the
Partner
(iii) Is the Partner same as QC Partner?
(iv) Has the PU established a system for
identifying all services performed for each
client and evaluating whether any of the
services impair independence?
(v) Does the PU regularly update itself with the
changes in professional ethics and
independence standards/ requirements?
(vi) What checks are put in place to ensure that all
personnel follow the independence and ethics
policies of the PU?
2. Which of the following checks does the PU put
in place to ensure that the independence
requirements are communicated to its
personnel:
(i) Does the PU maintain a list of entities with
which PU personnel and others, if any, are
prohibited from having a financial or business
relationship?
(ii) Does the PU make the list available to the
concerned personnel so that they evaluate
their independence?
(iii) Are the changes in the list notified to the
personnel as soon as such changes occur?
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Form 1

(iv) Does the PU provide frequent reminders of
professional responsibilities to personnel?
3. Which of the following policies, procedures
and the safeguards the PU has in place to
mitigate threats to its independence?
(i) Do the Engagement Partners provide the PU
with relevant information about client
engagement to enable it to evaluate the
overall impact on independence
requirements?
(ii) Does the PU provide training to partners and
professional staff on what constitutes threat to
independence and the safeguards that may be
taken to reduce the threats to an acceptable
level?
(iii) Accumulating and communicating relevant
information to appropriate personnel
(iv) How and to whom the personnel notify of
circumstances and relationships that cause
threat to independence?
(v) What are the steps taken by PU so that the
self-interest threat to independence is
mitigated?
(vi)a. How the PU is mitigating the self-review
threats.
(vi)b. Is there any checklist where the steps have
been outlined?
(vii)a. How the PU is mitigating the risk of advocacy
threats.
(vii)b. Can the PU demonstrate the same?
(viii)a. How the PU is mitigating the familiarity
threats.
(viii)b. Can PU demonstrate the same?
(viii)c. Is the relationship with client personal
disclosed in the Independence form?
17

(ix)a. Can the PU demonstrate that professional
skepticism was used in the entire assignment?
(ix)b. What measures are taken to mitigate the
same?
4. What policies, processes and safeguards has
the PU established with regard to threats to its
independence:
(i) Is it ensured that the PU does not have any
financial interests in audit clients, their owners
and officials?
(ii) Does the ethics policy of the PU emphasize
that the members of PU must not have other
than business relationships in audit clients,
their owners and officials?
(iii)a. Does the PU have the policy of rotating out
senior personnel from the assurance
engagements after a certain length of service
at a particular engagement?
(iii)b. If yes what is the length of service?
(iv) Whether there is a policy that the personnel
declares - the acceptance of gifts & hospitality
from clients/owners
(v) Does the PU have the policy to obtain annual
independence declaration from all personnel?
(vi) As a step in the engagement program, is the
Engagement Partner required to sign a
compliance with independence requirements?
(vii) In case professional service is conducted
jointly with other auditor, is the annual
independence confirmed for the other auditor?
5. Are the number of audit assignments held by
the PU, at any time, more than the specified
number of audit assignments:
(i) Under the prevailing Companies Act and/or
the limit prescribed by the ICAI.
18
Form 1

(ii) Tax audit assignments as per ICAI notification
6.(i) Has the PU accepted appointment as
Statutory Auditor of – PSU(s)/Government
Company (ies) Listed company(ies) and other
Public Company(ies) having turnover of more
than Rs. 50 crores or more in a year and
accepted other work or assignment or service
in regard to the same entity(ies) on a
remuneration which in total exceeds the fee
payable for carrying out statutory audit of the
same entity.)
6(ii) If yes, specify reasons
7.(i) Has the PU accepted appointment as an
auditor of a concern while it/he is indebted to
the concern or has given any guarantee or
provided any security in connection with the
indebtedness of any third person to the
concern, for the limits fixed in the statute and
in other cases for amount not exceeding
Rs.1,00,000.
7(ii) If yes, specify reasons.
8.(i) Has the PU received fees from a client below
the minimum scale of fees recommended for
audit assignments by the ICAI?
8(ii) If yes, reason for accepting fee below
recommended scales
9.(i) Has the PU, being statutory auditor of a client
rendered any services to the same client, as
mentioned in section 144 of Companies Act
2013
9.(ii) (if yes, specify reason with name of the
entities and year in which such service was
rendered)
10.(i) Has the PU, as incoming auditor for an entity,
followed the direction given by the ICAI not to
accept an appointment as auditor in the case
of unjustified removal of earlier auditor?
19

10.(ii) If no, reasons for non-adherence to the
direction
11.(i) Does the PU or a Network, as a good and `
healthy practice, make a disclosure of the
payment received by it for other services
through the medium of a different firm or firms
in which the said PU or Network or its partners
may have an ownership interest.
11.(ii) (If no, specify reasons)
12. Has the PU followed the Guidelines issued by
the ICAI in respect of engagement/(s)
procured through Tender?
13. Is the website of the PU in conformity with
Institute's guidelines/ directions issued on
posting of particulars on website by Practice
Unit(s)?
14. Whether your firm has been reviewed by:
(i) The Quality Review Board (QRB)
(ii) Financial Reporting Review Board (FRRB)
(iii) Any regulator (Pls. specify)
(iv) If yes, details as under:
Yr. of Name of Broad Dt. Of
Review entity descriptio Submission
n of of compliance
deficienci report (where
es ever reqd.)
15. Have any Government Bodies/ Authorities

evaluated the performance of the firm to the
extent of debarment/ blacklisting?
20
Form 1
PART B (III)
Acceptance and Continuance of Client Relationships and Specific
Engagements
1. Whether PU documents the decisions taken
relating to acceptance and continuance of
client relationships/ engagements?
(i) Does the PU maintain a client engagement/
acceptance and continuance form?
(ii) Who is responsible for completing the client
engagement/acceptance and continuance
form?
(iii) If No, how has the client engagement/
acceptance been documented Pls. elaborate.
2. Which of the following processes does the PU
have in place when accepting or deciding to
continue a client relationship:
(i) Informing Firm personnel of the policies and
procedures for accepting and continuing
clients
(ii) Usage of Client Acceptance/engagement
acceptance checklists listing down:
a) Obtaining and evaluating relevant information
before accepting or continuing clients
b) Performing Background checks for the
business, KMP, sister concerns, and other
person(s) in questions
c) Considering the integrity of the client
d) Communicating with previous auditor when
required or recommended by professional
standards
e) Evaluating the risk of providing services to
clients for which the firm’s objectivity or
independence may be impaired
f) Whether all KYC norms issued by ICAI are
fulfilled?
21

3. Who evaluates the information about the client
and gives final approval for
acceptance/continuance of client
engagement?
4. Which of the following procedures the firm has
in place for assessing its capability before
taking up new engagements/continuance of
existing clients:
(i) Evaluating whether the firm has sufficient
personnel with necessary capabilities and
competence
(ii) Specialists in terms of specific industry
experience or certain skill sets are available, if
needed
(iii) Individuals meeting the criteria and eligibility
requirements to perform an engagement QC
review are available, when needed, whether
internally or externally
(iv) Assessment that the firm would be able to
complete the engagement within agreed
deadline
5.(i) Does the PU prepare engagement letter
documenting the understanding with the
client?
5.(ii) Is the engagement letter signed by the client?
6. Has the PU withdrawn from an engagement
and/or from client relationship during the
period of review?
a) If yes, has the reason for withdrawal been
documented
b) If yes, please mention the Names /Codes of
the clients along with the year and the reason
for withdrawal- (Pls. use extra sheet, if
required)
Client Year of Reason for
Name/C withdrawal Withdrawal
ode
22
Form 1
7 Did the PU face any issues relating to

acceptance or continuance of client
relationships and specific engagements during
the period of review?
a) If yes, how was it resolved?
b) Who has the custody of such documents?
PART B (IV)
Human Resources
1. Which of the procedures does the PU have in
place for managing the Human Resource
function:
(i) Does the PU have a designated individual to be
responsible for managing Human Resource
function?
(ii) How frequently the designated person/ PU
evaluate the PUs personnel needs?
(iii) Is there a formal documented process for hiring
by the PU, covering:
a) Does the PU have an established criterion for
determining which individuals would be involved
in hiring process?
b) Has the PU laid down any qualification,
experiences, attributes required for the entry
level and experienced personnel to be hired?
c) Additional procedures like performing
background checks etc. been put in place?
d) Whether joining check-list is maintained?
23

2. Does the firm maintain and monitor the
employee turnover ratio and identify measures
to keep it minimal?
3. Does the firm maintain a minimum Staff to
Partner Ratio, Partner to Manager, Manager to
Articles, Client to Staff ratio, etc.
4. Which of the following considerations does the
PU have in place to select the engagement
partner & team required for an engagement:
a) Understanding the role of PUs Quality Control
and Code of Ethics issued by the Institute in
ensuring the integrity of the accounting, auditing
and attest functions to user of reports
b) Performance, supervision and reporting aspects
of the engagement, which ordinarily are gained
through training or participation in similar
engagements
c) The industry in which the client operates,
including its organization and operating
characteristics, sufficient to identify areas of
high or unusual risk associated with
engagement
d) The skills that contribute to sound professional
judgment, including the ability to exercise
professional skepticism
e) Adequate mix of different level personnel in the
team
f) How the auditee uses information technology
and the manner in which information systems
are used to record and maintain financial
information
5. Which of the following procedures does the PU
follow to determine the capabilities and
competencies possessed by personnel:
(i) Does the PU have an established criterion for
evaluating personal characteristics such as
integrity, competence and motivation?
24
Form 1

(ii)a. Does the PU evaluate the personnel atleast
annually to determine their capabilities and
competencies?
(ii)b. If yes, whether this is documented?
6. Does the PU have any policy for assigning
responsibility for engagements to an
engagement partner?
7. Does the PU have following parameters in
place to ensure that the knowledge of its
personnel get updated on an ongoing process:
(i) Requires personnel (including articled trainees)
to participate in the CPED programs in
accordance with firm guidelines to keep them
updated on the current developments
(ii) Maintains/tracks record of CPE status of its
professional personnel as per the requirements
of the ICAI
(iii) Provides CPED course materials / access to
digital content on the latest changes in
accounting, auditing, independence requirement
(iv) Provides orientation and training programs for
new hires
(v) Employees are equipped with technological skill
sets – like AI, Blockchain, Audit & Data
analytical tools, etc.
(vi) Does the PU sponsor any of skill development
tools?
(vii) Does the PU provide access to technology,
infrastructure and methodology for better
enablement of day to day work?
(viii) Does the PU organize self-developed programs
like group discussions, mock presentation, short
reviews by Team Leader etc.?
8. Does the PU have policies and procedures for
career advancement of its personnel?
25

9. Is there a system for evaluating the
performances on timely basis with the individual
being evaluated?
10. Is there a fast track advancement policy for star
performers?
PART B (V)
Engagement Performance
S.No. Policies and Procedures REMARKS/YES/NO/NA
1.(i) Does the PU plan for performing
engagements in accordance with professional
standards and regulatory and legal
requirements?
(ii) If yes, what does the plan encompass:
a) Are the responsibilities assigned to
appropriate personnel during the planning
phase?
b) Is the background information on the client
and the engagement developed/updated and
team briefed accordingly?
c) Does the firm prepare a planning document
mentioning the staffing requirements/the
risks/time allocation etc.?
d) Whether checklist of relevant Laws/Rules
including those related with Accountancy &
audit is shared with the engagement team?
e) Whether industry briefing about nature,
structure & vertical, and important points from
previous year audit summary memorandum
are provided to team during planning of the
engagement?
f) Any other (pls. specify)
2. Does the PU conduct pre-assignment meeting
with the clients, liaison office etc. to
understand the preparedness of the client to
start the professional functions.
26
Form 1

3. Does the PU prepare and document Audit
Summary Memorandum to provide the history
of the planned risks, the audit procedures
which mitigated the risk, conclusions on
controls etc.?
4. Does the PU prepare standardized forms,
checklists and questionnaires used in
performance engagements?
5. Does the team leader/Engagement Partner
keep a track of the audit findings, other
significant issues at various stages of the
engagement (including disposal/discussion
with the TCWG)?
6. How does the PU ensure that
(i) the qualified team members review the work
performed by other team members on a timely
basis?
(ii) Is there any document maintained by the PU
for the supervision of work performed?
7. What is the mode for maintaining the working
papers? Electronic mode or in physical form
or in a hybrid manner?
8. What tool does the PU use for maintaining the
working in electronic form?
9. Which of the following procedures does the
PU have in place to maintain confidentiality,
safe custody, integrity, accessibility and
retrievability of engagement documentation:
(i) Documenting when and by whom the
engagement documentation was prepared
and reviewed
(ii) Protecting integrity of information at all stages
of engagement especially when the
information was shared through electronic
means
27

(iii) Preventing unauthorized changes in
engagement documentation
(iv) Allowing access to engagement
documentation by engagement team and
other authorized parties only
(v) Enabling confidential storage of hardcopies of
engagement documentation
(vi) Requiring use of passwords by engagement
team members and data encryption to restrict
access to electronic engagement
documentation to authorized users
(vii) Maintaining appropriate backup routines at
appropriate stages during the engagement
(viii) Enabling the scanned copies to be retrieved
and printed by authorized personnel
10. Which procedures does the PU follow to
ensure that it maintains engagement
documentation for a period of time sufficient
to meet the needs of the firm, professional
standards, laws and regulations:
(i) For how many years the PU maintains
engagement documentation?
(ii) How does the PU enable retrieval of, and
access to engagement documentation during
the retention period in case of electronic
documentation as the underlying technology
may be upgraded or changed overtime
(iii) Does the PU ensure that, record of changes
made to engagement documentation after
assembly of files has been completed?
(iv) Does the PU ensure that only authorized
external parties access and review specific
engagement documentation for QC or other
purposes?
11(i) Does the PU have the policy for documenting
the issue requiring consultation, including any
decisions that were taken, the basis for those
decisions
28
Form 1

11(ii) And how they were implemented?
12. Who resolves with the differences of
professional judgement among members of
the engagement team?
13. Is there a formally designed an escalation
matrix, in case the differences are not
resolved at certain level?
14. Are the conclusions reached properly
documented?
15. What happens if the members of the team
continue to disagree with the resolution?
16. When does the PU release the report in cases
where differences in opinion exist?
17. Does the PU have a policy of having
engagement quality review conducted for all
audit of financial statements of listed entities?
18. Which of the criteria does the PU have in
place for carrying out the engagement QC
review for its engagements (other than
covered above):
(i) Certain class of engagements (mention the
class)
(ii) Risks in an engagement (mention type/level)
(iii) Unusual circumstances (mention the
particular circumstance)
(iv) Required by law or regulation (quote the
law/regulation)
(v) Any other like size (pls. elaborate)
19. Which of the following procedures are
followed by the PU for addressing the nature,
timing, extent, and documentation of
engagement QC review:
(i) Discuss significant accounting, auditing and
financial reporting issues with the
engagement partner
29

(ii) Discuss with the EP the engagement team’s
identification and audit of high risk assertions
and transactions
(iii) Confirm with the EP that there are no
significant unresolved issues
(iv) Read the financial statements and the report
and consider whether the report is
appropriate
(v) The procedures required by the firm’s policies
on engagement QC review have been
performed
(vi) The engagement QC review has been
completed before the report is released
(vii) Resolving conflict between the engagement
partner and the engagement QC reviewer
regarding significant matters
20. Which of the following are the PU's
established criteria for eligibility of
‘Engagement Quality Assurance Reviewers’:
(i) Selected by QC partner or the Managing
Partner
(ii) Has technical expertise and experience
(iii) Carries out the responsibilities with objectivity
and due professional care without regard to
relative positions
(iv) Meets the independence requirements
relating to engagement reviewed
(v) Does not participate in the performance of the
engagement except when consulted by the
engagement partner
(vi) Any other (Pls. specify)
30
Form 1
PART B (VI)
Monitoring
1.(i) Does the PU have Policies and
Procedures to confirm on the adequacy
and relevance of Quality Control
procedures adopted?
(ii) If yes, what document is in place to
establish the procedure
2. Who is responsible to evaluate the
Quality and Control policies and
procedures to ensure the relevance,
adequacy, effectiveness and
appropriateness with current trends?
3. How frequently are the processes and the
procedures related to QC revised?
4. When was the last revision to the Quality
Control policies and procedures carried
out?
5.(i) Did the PU follow ongoing consideration
and evaluation system of quality
controls?
5.(ii) If yes, what document is in place to
establish the same
6. Which of the following monitoring
procedure, the PU has in place for QC:
(i) Designated partner/(s) for performing
annual inspection
(ii) Deciding how long to retain detailed
inspection documentation
(iii) Reviewing correspondence regarding
consultation on independence, integrity
and objectivity matters and acceptance
and continuance decisions
(iv) Preparing summary inspection report for
the partner and sets forth any
recommended changes that should be
31

made to the firm’s policies and
procedures
(v) Reviewing and evaluating Firm practice
aids, such as audit programs, forms,
checklists and considering that they are
up to date relevant
(vi) Reviewing summary of CPED records of
firms professional personnel
(vii) Reviewing other administrative and
personnel records pertaining to QC
elements
(viii) Soliciting information on the effectiveness
of training programs from the Firm’s
personnel
(ix) Any other (Pls. elaborate)
32
Form 1
PART C
(Scores obtained by self-evaluation using AQMMv1.0)
[Mandatory Applicable w.e.f. 1st April 2023 for Practice units conducting
statutory audit of listed entities (other than branches of banks and Insurance
companies) and recommendatory for other Practice Units]
Section 1- Practice Management –Operation
Competency Basis Score Basis Max Scores
Scores obtained
1 Practice Management – Operation
1.1. Practice Areas of the Firm
I Revenue from audit and
(i) 50% to 75% – 5 8
assurance services Points
(ii) Above 75% – 8
Points
ii Does the firm have a vision For Yes – 4 Points 4
and mission statement? For No – 0 Point
Does it address Forward
looking practice
statements/Plans?
Total 12
1.2. Work Flow - Practice Manuals
i. Presence of Audit manuals For Yes – 8 Points 8
containing the firm's For No – 0 Point
methodology that ensures
compliance with auditing
standards and
implementation thereof.
ii. Availability of standard For Yes – 8 Points 8
formats relevant for audit For No – 0 Point
quality like -
- LOE
- Representation letter
- Significant working papers
- Reports and implementation
thereof
Total 16
33

Scores obtained
1.3. Quality Review Manuals or Audit Tool
i. Usage of Client For Yes – 4 Points 4
Acceptance/engagement For No – 0 Point
acceptance checklists and
adequate documentation
thereof.
ii. Evaluation of Independence For Yes – 4 Points 4
for all engagements For No – 0 Point
(partners, managers, staff,
trainees) based on the
extent required. The firm
must identify self-interest
threat, familiarity threat,
intimidation threat, self-
review threat, advocacy
threat and conflict of
interest.
iii. Does the Firm maintain and For Yes – 4 Points 4
use the engagement For No – 0 Point
withdrawal/ rejection policy,
templates, etc.
iv. Availability and use of For Yes – 4 Points 4
standard checklists in For No – 0 Point
performance of an Audit for
Compliance with Accounting
and Auditing Standards
v. Availability and use of For Yes – 4 Points 4
standard formats for audit For No – 0 Point
documentation of Business
Understanding, Sampling
basis, Materiality
determination, Data
analysis, and Control
Evaluation
vi. Are the documents related For Yes – 4 Points 4
to Quality control mentioned For No – 0 Point
from (i) to (v) above
reviewed and updated on a
34
Form 1

Scores obtained
frequent basis (say annually)
or with each change in the
respective regulation or
statute and remedial action
taken?
Total 24
1.4 Service Delivery - Effort monitoring
i. Does the firm carry out a For Yes – 4 Points 4
Capacity planning for each For No – 0 Point
engagement?
ii. Is a process of Budgeting & For Yes – 4 Points 4
Planning of efforts required For No – 0 Point
maintained (hours/days/
weeks)?
iii. Are Budget vs Actual Up to 10% – 0 Point 20
analysis of time and effort More than 10% and
spent carried out to identify up to 30% – 4
the costing and pricing? Points
More than 30% and
up to 50% – 8
Points
More than 50% and
up to 70% – 12
Points
More than 70% and
up to 90% – 16
Points
More than 90% – 20
Points
iv. Does the firm deploy For Yes – 8 Points 8
technology for monitoring For No – 0 Point
efforts spent - Utilisation of
tools to track each activity
(similar to Project
management - Say
timesheets, task
management, etc.)? Note:
35

Scores obtained
DCMM Version 2 may be
referred to arrive at the
technical maturity of the
firm/ CA.
Total 36
1.5 Quality Control for engagements
i. Does the firm have a Quality For Yes – 8 Points 8
Review of all Listed audit For No – 0 Point
engagements as per para 60
of SQC1? Is there a
document of time spent for
review of all engagements?
ii. Total engagements having Up to 10% – 0 Point 20
concluded to be satisfactory More than 10% and
as per quality review vs No up to 30% – 4
of engagements quality Points
reviewed
More than 30% and
up to 50% – 8
Points
More than 50% and
up to 70% – 12
Points
More than 70% and
up to 90% – 16
Points
Points
iii. No. of engagements without 10% to 30% – 4 20
findings by ICAI, Points
Committees of ICAI and More than 30% and
regulators that require up to 50% – 8
significant improvements Points
More than 50% and
up to 70% – 12
Points
More than 70% and
up to 90% – 16
36
Form 1

Scores obtained
Points
Points
iv. Documentation of the firm in For the presence of 12
accordance with SQC 1 documentation in
the critical areas of
Ethical
requirements,
Acceptance and
continuance of
client relationships
and specific
engagements, and
Engagement
performance – 6
Points
For the presence of
documentation in
the areas of
Leadership
responsibilities for
quality within the
firm, Human
resources, and
Monitoring – 6
Points
v. Does the firm have For Yes – 8 Points 8
Accounting and Auditing For No – 0 Point
Resources in the form of soft
copies of archives Q&As,
firm thought leadership, a
dedicated/ Shared Technical
desk?
vi. Is appropriate time spent on For Yes – 12 Points 12
understanding the business, For No – 0 Point
risk assessment and
planning an engagement?
Have risks been mitigated
through performance of
audit procedures?
37

Scores obtained
Total 80
1.6 Benchmarking of service delivery
i. Does the firm follow/ For Yes – 4 Points 4
implement Standard delivery For No – 0 Point
methodology – the adoption
of audit manuals, adherence
to practice standards and
tools?
ii. The number of statutory Less than 5% – 0 0
audit engagements re- Point
worked (filing errors, More than 5% to
information insufficiency, 15%: (-1) Point
wrong interpretation of
More than 15% to
provisions, etc.)
30%: (-2) Points
More than 30% to
50%: (-3) Points
More than 50%:
(-4) Points
iii. Number of client disputes Less than 5% – 0 0
(other than fees disputes) Point
and how they are More than 5% to
addressed. 15%: (-1) Point
More than 15% to
30%: (-2) Points
More than 30% to
50%: (-3) Points
More than 50%:
(-4) Points
iv. Is the timing of audit For Yes – 12 Points 12
interactions with For No – 0 Point
management planned in
such a way that integrates
with the auditor’s
requirements so that audit
timelines can be met?
[Review frequency of back-
log, engagement agreed
38
Form 1

Scores obtained
upon and not commenced,
WIP, etc. (Excl. of client-side
delays)]
Total 16
1.7 Client Sensitisation
i. Awareness meetings and For Yes – 8 Points 8
Knowledge For No – 0 Point
dissemination meetings/
articles/document sharing
with clients including:
1) Updating client on audit
issues, formally-
effectiveness of the process
of communication with
management and those
charged with Governance;
2) Updating client on changes
in accounting, legal, audit
aspects, etc. with client
specific impact; and
3) Follow through on
previous audit observations
and updates to management
and those charged with
Governance.
ii. Monitoring planned hours vs For Yes – 8 Points 8
actual hours across For No – 0 Point
engagement; the focus is on
the existence of a
monitoring mechanism
Total 16
1.8 Technology Adoption
(i) Technology adoption at
Office –
• Internal communication – For Yes – 4 Points 4
chats For No – 0 Point
39

Scores obtained
• Has the firm automated its For Yes – 4 Points 4
office with automated For No – 0 Point
Attendance System and
Leave management?
• Project or activity For Yes – 4 Points 4
management/ Timesheet For No – 0 Point
management,
• Digital storage of records For Yes – 4 Points 4
(scan, etc.), For No – 0 Point
• Centralised server/ Cloud For Yes – 4 Points 4
For No – 0 Point
• Digital Library (Own or ICAI) For Yes – 4 Points 4
For No – 0 Point
• Client interaction (Alerts, For Yes – 4 Points 4
updates, availability of For No – 0 Point
information in website, etc.),
• Video conferencing facilities For Yes – 4 Points 4
adopted, For No – 0 Point
• Does the firm use only For Yes – 4 Points 4
licensed operating system, For No – 0 Point
software etc.?
• Own E-mail domains, E-mail For Yes – 4 Points 4
usage policies, etc. For No – 0 Point
• Use of anti-virus and For Yes – 4 Points 4
malware protection tools, For No – 0 Point
• Data security, etc. For Yes – 4 Points 4
For No – 0 Point
• Cyber security measures For Yes – 4 Points 4
For No – 0 Point
ii. Awareness and Adoption of For Yes – 12 Points 12
Technology for Service For No – 0 Point
delivery – Say, use of Audit
tools, usage of analytical
tools, use of data
visualisation tools or
40
Form 1

Scores obtained
adoption of an audit tool.
Note: DCMM Version 2 may
be referred to arrive at the
technical maturity of the
firm/ CA.
Total 64
1.9 Revenue, Budgeting & Pricing
i. Whether the client wise For Yes –4 Points 4
revenue is in compliance For No – 0 Point
with the Code of Ethics
(currently fees from one
client should not exceed
40% of total revenue unless
safeguards are put in place)
and once the deferred
clauses of Part A are
implemented this will be
reduced to 15%.
ii. Fee considerations and Yes – 8 Points 8
scope of services should not For No – 0 Point
infringe upon the quality of
work and documentation as
envisaged in SQC 1 under
Leadership is responsible for
quality within the firm.
iii. Adherence to a minimum For up to 50% of the 4
scale of fees standards engagements- 2
recommended by ICAI Points
For More than 50%
of the engagements
– 4 Points
For None – 0 Point
Total 16
Total of Section 1 280
41

Scores obtained
2 Human Resource Management
2.1. Resource Planning & Monitoring as per the firm's policy
i. Does the firm have a For Yes – 4 Points 4
process of Employee/ For No – 0 Point
Resource Planning for the
engagements based on skill
set requirement, experience,
etc.?
ii. Methods/Tools used by the For Yes – 4 Points 4
firm for Resource Allocation For No – 0 Point
(use of spreadsheets, work
flow tools, etc.)
iii. Is there a method of tracking For Yes – 4 Points 4
the employee activity, to For No – 0 Point
identity resource productivity
(e.g., timesheet)?
iv. Does the firm maintain a For Yes – 8 Points 8
minimum Staff to Partner For No – 0 Point
Ratio, Partner to Manager,
Manager to Articles, Client
to Staff ratio, etc.
v. Does the firm monitor the For Yes – 4 Points 4
Utilisation & Realisation rate For No – 0 Point
per employee
vi. Does the firm document the For Yes – 4 Points 4
resource plan for each For No – 0 Point
engagement and file it for
reference during the
engagement?
Total 28
2.2. Employee Training & Development
i. Does the firm have an For Yes – 4 Points 4
employee training policy? For No – 0 Point
ii. Number of Professional 60 hours per year 24
Development hours/days for junior- level: 2
42
Form 1

Scores obtained
spent (Frequency) as a firm Points for general
– per employee training and 6
points for
specialised
technical training
30 - 60 hours per
year for mid- level:
2 Points for general
training and 6
points for
specialised
technical training
More than 30 hours
for partners: 2
Points for general
training and 6
points for
specialised
technical training
iii. Employees are equipped Use of Analytical 8
with technological skill sets – Tools for the listed
AI, Blockchain, Audit & Data entity, Banks other
analytical tools, etc. and than co-operative
sponsored by the firm to banks (except
develop the same: multi-state co-
1. Knowledge of technological operative banks)
skill sets will be more and Insurance
relevant for large audits Companies audit
(Like Audit Engagements of engagements:
Listed entity, Banks other For Yes – 8 Points
than co-operative banks For No – 0 Point /
(except multi-state co- NA
operative banks) and
Insurance Companies etc.).
Hence, the question should
be relevant only for such
audit engagements.
2. The audit Teams should be
aware of Data Analytics
Tools and comprehend the
43

Scores obtained
results of the tools to adjust
the audit strategy.
3. Technologies like AI and
blockchain may be
considered as an
incremental factor for
differentiation purposes, if
the firms are scored at the
same level.
iv. Whether the firm has a For Yes – 8 Points 8
performance management For No – 0 Point
culture that rewards high
performing employees and
those who demonstrate high
levels of quality and ethics?
Total 44
2.3. Resources Turnover & Compensation Management
i. Does the Firm evaluate a For Yes – 8 Points 8
team composition overall to For No – 0 Point
build the Team Strength -
say, Number of Managers,
Assistant Managers, Paid
Assistants, Article
Assistants, Other Degree
holders?
ii. Does the firm maintain and For Yes – 8 Points 8
monitor the employee For No – 0 Point
turnover ratio and identify
measures to keep it
minimal?
iii. Qualified professionals 10 and above – 20 20
retained by the firm Points
(resources available to a 8 to 9 – 16 Points
partner)
6 to 7 – 12 Points
4 to 5 – 8 Points
Up to 3 – 4 Points
iv. Does the firm evaluate the For Yes – 4 Points 4
44
Form 1

Scores obtained
Employee relation with the For No – 0 Point
firm (No. of Professionals vs.
No. of years employed with
firm) to identify reasons for
turnover if any?
v. Statutory contributions For Yes – 8 Points 8
wherever applicable, Health For No – 0 Point
Insurance and other
benefits, available in the firm
for staff members and
partners
vi. Does the firm evaluate for For Yes – 4 Points 4
which kind of audits does it For No – 0 Point
have a revolving door
(between different
engagements) for people
below partner level?
vii. Progress of people through For Yes – 8 Points 8
an established framework For No – 0 Point
and time commitment of
Managers and Partners –
Engagement level review
and overall performance
evaluation and rewards
mechanism for differentiated
performance levels
viii. Access and use of For Yes – 8 Points 8
technology, infrastructure, For No – 0 Point
methodology for better
enablement of day-to-day
work / including favorable
remote working policies
ix. Coaching and mentoring For Yes – 8 Points 8
program investment, For No – 0 Point
especially for women
colleagues to enhance the
diversity of audit leaders in
the profession
45

Scores obtained
x. Special policies to provide For Yes – 4 Points 4
people time to rejuvenate For No – 0 Point
especially after busy audit
seasons
xi. Focused policies and For Yes – 8 Points 8
support for staff well - being, For No – 0 Point
engagement and
communication
xii. An established mechanism For Yes – 8 Points 8
to listen to people and their For No – 0 Point
views and suggestions.
Credible Employee survey
and its outcome
demonstrate how well
people are taken care of and
heard.
xiii. Standards of recruiting For Yes – 4 Points 4
people – Assessment For No – 0 Point
methodology, evaluation of
quality and fitment to the job
and culture
xiv. Are the employees of the For Yes – 4 Points 4
firm compensated as per a For No – 0 Point
defined approach where
salary is mapped to the
knowledge and experience
level of the employee?
Total 104
2.4. Qualification Skill Set of employees and use of Experts
i. Number of Professionally Upto 30% – 4 12
qualified members – Points
ACA/FCA More than 30% to
If evaluation is being done 50% – 8 Points
for a firm that primarily offers Above 50% – 12
Statutory and Tax Audit Points
Services then only ACA /
FCA should be considered
for evaluation purposes.
46
Form 1

Scores obtained
ii. Post Qualification Applicable – 8 8
Certifications obtained from Points
professional bodies or Not Applicable – 0
similar organisations (DISA, Point
IP, etc.)
DISA and IP are courses
that are required in
Information System Audits.
If qualified resource is not
available in the firm, whether
the services of expert are
taken?
Whether all partners have
complied with CPE
requirements of ICAI?
iii. Members with Specialisation Upto 30% – 4 12
courses or Certifications – Points
(Ranking can be based on 30% to 50% – 8
newer areas or international Points
qualification – say, Dip.
Above 50% – 12
IFRS or Firm Ind AS / IFRS
Points
Accreditation Requirements,
etc.)
Total 32
2.5 Performance evaluation measures carried out by the firm (KPI’s)
i. Does the firm have written For Yes – 8 Points 8
KPIs for performance For No – 0 Point
evaluation of the firm and
partners?
ii. Method for measurement For Yes – 8 Points 8
and evaluation as mentioned For No – 0 Point
above (i) are determined /
specific.
iii. There is a decided For Yes – 8 Points 8
frequency for the evaluation For No – 0 Point
and is consistently applied
iv. Are engagement partners For Yes – 8 Points 8
47

Scores obtained
reviewed based on the For No – 0 Point
review results of the
engagements of each
partner
Total 32
Total of Session 2 240
3 Practice Management – Strategic/Functional
3.1 Practice Management
Does the firm Manage the

following attributes relating
to Assurance partners to
maintain the same at
optimum levels as deemed
fit for the respective
organisations?
i. Does the firm have a For average partner 8

balanced mix of experienced experience of
and new Assurance partners > 5 years
partners? – 4 Points
For average partner
experience of
partners > 10 years
– 8 Points
ii. Is the firm compliant with the For Yes – 8 Points 8

ICAI Code of Ethics, For No – 0 Point
Companies Act 2013 and
other regulatory
requirements in relation to
Professional Independence
and Conflict of Interest?
iii. Is there is a 'whistle blower' For Yes – 4 Points 4

policy? For No – 0 Point
Total 20
48
Form 1

Scores obtained
3.2 Infrastructure – Physical & Others
i. Number of Branches & Upto 3 – 2 Points 8
Associates and network 4 to 7 – 4 Points
firms and affiliates
8 to 15 – 6 Points
More than 15 – 8
Points
ii. Are branch level activities Centralised – 8 8
Centralised/ Decentralised in Points
accounting, Invoicing, and Decentralised – 4
Payroll processing Points
iii. Physical & Logical Security For Yes – 8 Points 8
of Information are extended For No – 0 Point
and implemented across
locations?
iv. Are there adequate DA tools For Yes – 12 Points 12
and IT infrastructure For No – 0 Point
available and are they being
used for the relevant
assignment?
v. Is the infrastructure For Yes – 12 Points 12
adequate in terms of For No – 0 Point
internet/intranet network
bandwidth/ VPN/Wi-Fi etc.
for remote working?
Total 48
3.3 Practice Credentials
What are the credentials of
the firm that distinguish the
firm or stands as testimony
to the quality of the firm?
i. Is the firm ICAI Peer Review For Yes – 4 Points 4
certified? For No – 0 Point
ii. Empanelment with RBI / For Yes – 8 Points 8
C&AG For No – 0 Point
49

Scores obtained
iii. Is there an advisory as well For Yes – (-5) 0
as a decision, to not allot Points
work due to unsatisfactory For No – 0 Point
performance by the CAG
office?
iv. Have any Government For Yes – (-10) 0
Bodies/ Authorities Points
evaluated the performance For No – 0 Point
of the firm to the extent of
debarment/ blacklisting?
v. Any negative assessment in For Yes – (-5) 0
the report of the Quality Points
Review Board? For No – 0 Point
vi. Has there been a case of For Yes – (-5) 0
professional misconduct on Points
the part of a member of the For No – 0 Point
firm where he has been
proved guilty?
Total 12
Grand Total 600
:
Signature
Name of Proprietor/Partner/ :
individual Practicing in own name:
Membership No. of the Signatory :
Mobile No. of the Signatory :
Stamp of Firm :
Date :
50
Form 1
Guidance for filling and checking Form 1

Guidance for filling and checking Application submitted by Practice Unit
Clause Details required as per Guidance for filling and checking

No. Form details of Application
1 Our Firm • The Name and FRN should
……………(Name of match with ICAI Firm Card
practice unit as per ICAI • Period of Review should be as
Records) ; FRN/ M. No. per letter issued by PRB of ICAI
…. (Firm Registration and accordingly the Reviewer
Number/ Mem. No. as per should verify the same
ICAI records) would like to
apply for Peer Review for
the period
from....……to……….
(three preceding financial
years from the date of
application). We have
gone through the Peer
Review Guidelines 2022
hosted at …. And
undertake to abide by the
same.
2 Reasons for applying for The following are the keys for ticking
Peer Review box:
(i) Mandatory: If mandated by any
regulator e.g. ICAI, SEBI etc.
(ii) Voluntary: Any PU may, suo
motu, opt to get itself Peer
Reviewed
(iii) Special Case Review: Board, on
receipt of information from
Secretary, ICAI or Disciplinary
Directorate or any other
Regulator, may conduct Special
Peer Review of the PU for such
period as determined by it
(iv) New Unit: New Unit as defined
under clause 2(12) of the Peer
51

Review Guidelines, 2022
(v) Decision of Board: If PU is
moving towards next cycle
(renewal of certificate) or any
other prescribed criteria of
selection of PU for Peer Review
3 Declaration of reports • PU should mention the type of
signed during period clients (Bank, Manufacturing,
under review individuals etc.) to which it has
provided assurance service
during the review period.
• The same should be mentioned
correctly against the type of
assurance service
• Under sub clause 7 (any other) ,
PU should mention the type of
service not covered under sub
clause 1 to 6 of the table as per
details mentioned in clauses 22
A to K of Part A of the
questionnaire.
• All type of assurance services
rendered by the PU as
mentioned under this clause
should also be provided under
clauses 22 A to K of Part A of the
Questionnaire. For eg if Internal
audit is conducted for ABC Ltd
for the FY 20XX-20X1 this
should be mentioned under the
relevant sub- clause of clause
22. Or if certification work is
rendered, the
4 Statutory Audit of The Practice Unit has to inform
enterprises Listed in India whether it has conducted statutory
or abroad audit of any listed entity during the
review period and accordingly should
52
Form 1

tick or strike out the applicable words
(i.e. has conducted / has not
conducted)
5 Option for appointment of The Practice Unit is given an option
Reviewer to select the reviewer from the same
city or another city. It should therefore
should select the appropriate option
as per its choice.
6 Mail ID for communication Updated Email ID which is being used
with the Practice Unit by the PU for correspondence with the
Reviewer and ICAI should be
mentioned
7 Address for sending the In case practice unit wishes to receive
Peer Review Certificate Peer Review Certificate at a place
other than the HO address as per
SSP Portal, PU is requested to
mention correct and complete address
with Pin code
8 Tick the applicable clause • This clause should be filled by
or mention N.A. as the New Practice Units as defined
case may be under Clause 2 (12) of Peer
Review Guidelines.
• Please refer link
https://resource.cdn.icai.org/7201
7prb57960-peer-review-new-
units.pdf for criteria and correct
ticking sub clause (i) to (v)
• Reviewer must check applicability
of ticked clause with issued Peer
Review Certificate to erstwhile firm
and Reviewer Certificate to
empanelled Chartered Accountant
9 Policies, procedures and • This clause is applicable for New
infrastructure of my firm is Practice Units as defined under
in conformity with the Clause 2 (12) of Peer Review
Standards on Quality Guidelines.
Control i.e. SQC 1 • Reviewer has to ensure that the
53

firms’ Policies, procedures and
infrastructure are in conformity
with the Standards on Quality
Control i.e. SQC 1
10 Audit of listed entity (Tick • This clause should be filled by
as applicable) New Practice Units as defined
under Clause 2 (12) of Peer
Review Guidelines.
• Reviewer must verify that the
partner / proprietor has carried out
audit of Listed company in last
three years
11 Partner details for Peer Name, mobile number and email id of
Review process Partner / Proprietor for communication
purposes should be mentioned by the
PU and confirmed by the reviewer
Note: New Practice Units as defined under Clause 2 (12) of Peer Review
Guidelines, 2022 must fill all clauses. Practice Units other than New
Practice Units are not required to fill Clause numbers 8, 9 and 10.
Guidance for filling and checking Part A – Profile of Practice Unit

submitted by Practice Unit
Clause Details required Guidance for filling and checking
No. Part A
1 Name of the Practice The Name should match with name
Unit as per ICAI Firm Card
2 Peer Review of HO or • As per Peer Review Guidelines
Branch 2022, a Practice Unit can opt for
Peer Review of its HO and any of
its branch(es) through a separate
Peer Reviewer. Separate Peer
Review fee has to be paid to
each Peer Reviewer.
• HO’s Reviewer should
consolidate the report for HO with
54
Form 1

No. Part A
that of Branch Peer Reviewers
report
• Accordingly, the Practice Unit
should tick one option (in case
Peer Review of its HO is
conducted by 1 Peer Reviewer
who will also conduct the Peer
Review of its branch office) or
both option (in case the PU
needs a separate Peer Review of
its branch conducted through a
Peer Reviewer other than the
Peer Reviewer of its HO)
3 Address (As per ICAI The Address should match with
records) address as per ICAI Firm Card
4 Email ID and website of • Practice Unit should mention its
PU updated Email ID for
correspondence with the
Reviewer and ICAI
• The reviewer should check the
Website address provided by
practice unit. The answer should
reconcile with Clause 13 of Part
B (II)
5 Status The Status should match with ICAI
Firm Card – Proprietorship /
Partnership / LLP / Practicing in
individual name for Peer Review
Period
6 Date of establishment The date of establishment should
of the PU match with ICAI Firm Card
7 Firm Registration FRN should match with ICAI Firm
Number Card. If an individual is practicing in
own name, membership number
should match with ICAI Firm Card
55

No. Part A
8 Is there any networking Network name, start and exit date of
firm networking should match with ICAI
Firm Card, any correspondences /
approvals with ICAI etc.
9 Period of assurance This period should match with the
service under review period mentioned in the letter issued
by PRB of ICAI
10 Contact person of PU Practice Unit should provide correct
for Peer Review (along details for effective communication
with Mobile No. and and avoidance of procedural delays
Email id)
11 Particulars about the • Practice Unit should provide
constitution of the PU details with reference to the copy
during the period under of Form 18 submitted to ICAI,
review (as per Form 18 partnership deed if any.
filled with the ICAI). Is • All columns must be filled by
there assurance service Practice Unit
like Statutory audit, tax
• Reviewer should verify the same
audit, Taxation etc.
for the Peer Review period.
headed by different
partners • Reviewer should verify details
from applicable forms filed by
Practice Unit with ICAI.
12 Particulars of Chartered • These particulars should match
Accountants Employed with ICAI Firm Card
or Consultants as on • Reviewer should match these
<______>:(last date of particulars from HR records. The
block period of peer reviewer should also reconcile
review) the difference, if any, due to time
gap in generating Firm Card and
details as on last date of block
period of peer review
• The reviewer should check
whether responses provided by
Practice Unit under Part B(IV) of
the Questionnaire are unanimous
56
Form 1

No. Part A
with the details mentioned by the
Practice Unit under this clause.
13 Details of Other • These particulars should match
Employees as on with ICAI Firm Card
<______>:(last date of • Reviewer may verify from HR
block period of peer records
review) • Reviewer to check that last date
of block period is mentioned by
Practice Unit
14 If the PU has any Branch details should match with ICAI
branch offices, furnish Firm Card during the review period
details of member in
charge and number of
staff
15 How is the control • This clause becomes mandatory
procedure followed by if affirmative answer is provided
the Branch/es. And for clause 14 above by Practice
whether any periodic Unit else PU may mention ‘not
sample testing of clients applicable’
handled by branch/es is • The Practice Unit in its Quality
done by HO? Control Manual has to define the
control procedures for its
branches. Control procedures
may include sample testing of
audits done by branch, client
relationships, hiring process,
training process, branch
monitoring etc.
• Periodicity of checking above
process should also be
mentioned in the Manual
• The Reviewer should examine
the process followed by HO of
the PU for controlling branch
activities from the Quality control
Manual.
57

No. Part A
16 Gross receipts of the • Details should cover for Peer
Practice Unit [both H.O. Review Period only
and branch(es)] as per • the purpose of this clause is to
books of accounts from ascertain the Peer Review Fees
assurance functions for • In case the Practice Unit is not
the period under review. able to bifurcate between gross
In case of centralized receipt from assurance and non-
billing the branch assurance service, it has an
turnover may be added option to provide its total gross
with HO otherwise receipts from assurance as well
separate figures (Rs. In as non-assurance services.
Lakhs) to be given
• The Peer Review fee may be
Or mutually agreed upon by the
Total Gross receipts of Reviewer and the Practice Unit.
the Practice Unit [both The Reviewer may decline the
H.O. and branch(es)] as appointment in case of
per books of accounts disagreement.
for the period under
• The Reviewer shall communicate
review. In case of
to the Board within 1 day of
centralized billing the
declining the assignment.
branch turnover may be
added with HO
otherwise separate
figures (Rs. In Lakhs) to
be given
17 Concentration: Furnish • Practice Unit should fill all the
details where columns of the said clause
professional fees from appropriately mentioning the
any client exceed 15% name of the client or the group
of the PU’s total gross wherein professional fees from
receipts the client or group exceed 15% of
its total gross receipts
• Reviewer’s sample must include
at least one group / client from
Assurance service which
contribute 15% or more of Total
Gross Receipts of the firm
58
Form 1

No. Part A
18 Whether PU has ever • In case of affirmative answer,
undertaken self- Practice Unit should provide date
evaluation as per which is matched with the
‘Digital Competency documents maintained or report
Maturity Model-2? If available with it
yes, when_________? • If not undertaken, please mention
N.A.
19 Has the PU been • Practice Unit should mention
subjected to a Peer Certificate number in case of
Review in the past? If affirmative answer. Reviewer
yes, the Certificate should verify from last issued
number issued by the Peer Review Certificate
Board. • If not issued earlier, please
mention N.A.
20 Whether any Partner / • Practice Unit must provide details
Employee of Practice in case of applicability in the
Unit has been found prescribed format
guilty by the • Reviewer should check the same
Disciplinary Committee from correspondences between
in the past 3 years in the firm and DC (through Emails /
any capacity letters) maintained by the
Practice Unit
21 Whether any client • Practice Unit should mention Yes
obtained through the / No
process of tendering? • Practice Unit should mention
clients obtained through tender in
Clause 22 A to K in bracket and
accordingly answer to Clause 12
of Part B (II) of Questionnaire
has been provided
• In case the Practice Unit has
obtained clients through
Tendering process, Reviewer
sample must include Tender
Clients
59

No. Part A
• The Reviewer to verify whether
guidelines issued by the ICAI in
respect of engagement/(s)
procured through Tender have
been followed while reviewing the
sample of group/ client procured
through tender
22 Please provide details • Practice Unit must provide
Annexure of assurance clients answer for all sub clauses i.e. A
A where report/certificate to K. In case of no client under
has been signed during any category, Practice Unit
the period under review, should mention NIL.
financial year wise and • PU to read the clause carefully to
branch wise ascertain under which sub-clause
the client details has to be
provided.
• The PU should also mention
whether services are rendered
through its HO or branch; name
of signing partner as well as
whether EQCR has been done or
not.
• The Reviewer should obtain list
of all UDINs generated by each
partner of the firm for each year
covering the Review period
• The total number of UDINs
generated should tally with the
total number of all client’s
provided by Practice Unit to
Reviewer in this Appendix.
• Reviewer should carefully verify
that Practice Unit has provided
separate financial year wise and
partner-wise as well as BO/HO
wise details of assurance clients
60
Form 1

No. Part A
• Reviewer must select sample as
per the Sample Selection Criteria
prescribed by the Board from list
provided in Clause 22
• Reviewer should ensure that
whether EQCR is done or not
and mentioned in respective
column for all clients
Note 1: All the clauses of the Application cum Questionnaire are mandatory
in nature and therefore required to be filled. In case any clause is not
applicable, practice unit must mention N.A.
Note 2: All data should pertain to PEER REVIEW PERIOD. Peer Review
Period is the FINANCIAL YEAR mentioned in the letter issued by Peer
Review Board of The Institute of Chartered Accountants of India.
Note 3: Assurance services include Statutory Audits (SA), Tax Audits (TA),
Certification (Cert.), GST Audits (GA), Internal Audits (IA), Limited Review
(LR), Concurrent Audits (CA), Special Audits (SpA), Stock Audits (StA),
System Audit (SyA), Central Statutory Audit (CSA), Revenue Audit (RA),
Financial Audit (FA) etc. But does not include:
(i) Management consultancy Engagements;
(ii) Representation before various authorities;
(iii) Engagements to prepare tax return or advising clients in taxation
matter;
(iv) Engagements for the compilation of financial statement;
(v) Engagements solely to assist the client in preparing, compiling or
collating information other than financial statement;
(vi) Testifying as an expert witness;
(vii) Providing expert opinion on points of principle, such as Accounting
Standards or the applicability of certain laws, on the basis of facts
provided by the client; and
(viii) Engagements for due diligence.
61
Guidance for filling and checking Part B – GENERAL CONTROLS

(Based on SQC 1) of Practice Unit as submitted by Practice Unit
The Standard on Quality Control i.e. SQC-1 has been made mandatory by
ICAI on and from (1st April 2009). Hence, the PU is required to establish a
system of ‘Quality Control’, designed to provide reasonable assurance that
the PU and its personnel comply with professional standards; regulatory,
legal and ethical requirements.
Broadly, PU system of quality control should include policies and procedures
addressing leadership responsibility, ethical requirements, acceptance and
continuance of client relationship, Human Resources, Engagement
Performance and Monitoring etc. A Questionnaire based on these criteria is
given in Part B(I); B(II); B(III); B(IV); B(V) and B(VI) herein below.
[Notes:
(iii) The application of SQC-1 will depend on various factors such as the
size and operating characteristics of the PU and whether it is part of
network.]
(iv) Refer to implementation Guide to SQC1:
https://resource.cdn.icai.org/20913frpubcd_aasb1.pdf
Reference Topic Guidance

General Background The Purpose of Standards on
Quality Control (SQC) is to establish
standards and provide guidance
regarding firm’s responsibilities for
its system of quality control for audit
and reviews of historical financial
information, and for other assurance
and related service engagements.
General Engagement Partner - The partner or other person in the
definition form who is a member of the ICAI
and is in full time FEES
practice and is responsible for the
engagement and its performance,
and for the report that is issued on
behalf of the firm and who, where
required, has the appropriate
62
Form 1

authority from a professional, legal
or regulatory body.
General Engagement quality A partner, other person in the firm,
control reviewer suitably qualified external person, or
a team made up of such individuals,
with sufficient and appropriate
experience and authority to
objectively evaluate, before the
report is issued, the significant
judgments the engagement team
made and the conclusions they
reached in formulating the report.
However, in case the review is done
by a team of individuals, such team
should be headed by a member of
the Institute.
General Qualified External In case of sole proprietorship firms
Persons or small firms, a suitable qualified
external persons may be contracted
for quality control reviews.
Alternatively, some other firms may
be used to facilitate engagement
quality control reviews. (Clause 72 of
SQC1)
General Complaints In case of complaints, the firm
investigates such complaints and
allegations in accordance with
established policies and procedures.
The investigation is supervised by a
partner with sufficient and
appropriate experience and authority
within the firm but who is not
otherwise involved in the
engagement and includes involving
legal counsel as necessary. Small
firms and sole practitioners may use
the services of a suitably qualified
63

external person or another firm to
carry out the investigation.
Complaints, allegations and the
responses to them are documented.
(Clause 104 of SQC1)
General Threats: The firm should safeguard against
(a) Self Interest these threats which threaten the
independence of the firm. The self-
(b) Self-Review
interest threat would amount to
(c) Advocacy having any interest –
financial/business dealings with the
client which leads to compromise on
quality.
Self-review threat would mean
undertaking such other assignments
where the work done by the auditor
is subject matter of review as part of
audit process. This will lead to bias
in the application of mind.
Advocacy threat would mean
promoting client’s opinion. The firm
dealing in shares of the client or
representing it in any litigation.
General Who are required to As per Para 5 of SQC1, the standard
apply SQC applies to all firms. The nature of the
policies and procedures developed
by individual firms to comply with
SQC will depend on various factors
such as the size and operating
characteristics of the firm, and
whether it is a part of the network.
It would, accordingly, be appropriate
for each firm to design its SQC
policy based on its size and
characteristics. Hence even a sole
proprietorship firms need to prepare
64
Form 1

SQC Manual and policy in place
according to its size.
Serial no. Does the PU have a The firm should establish a system
1 of the Quality Control Manual of quality control to promote an
Part B(I) in place? internal culture based on the
recognition that quality is essential in
performing engagements as well as
to provide reasonable assurance
that the firm and its personnel
comply with professional standards
& regulatory and legal requirements.
Serial No Whom has the firm Since this involves policy decision, it
2 of the entrusted with the should be the responsibility of the
Part B(I) responsibility for Chief Executive or Managing Partner
developing, to develop, implement and operating
implementing, and the Firms QC system.
operating the Firm’s QC
system?
Serial No Who is ultimately The Managing Partner (MP)
3 of the responsible for ensuring ultimately responsible for the design,
Part B(I) the effectiveness of the implementation and operating
firm’s System of QC effectiveness of the Firm’s system of
and setting a tone that QC and educating professional
emphasizes the personnel about the requirement and
importance of quality? importance of following a system of
QC.
Serial no. Who evaluates the The Managing Partner (MP) will
5 of the client relationships and evaluate as well emphasize to all
Part B(I) specific engagements personnel that fee considerations
to ensure that and scope of services should not
commercial infringe upon quality of work,
considerations do not documentation and other QCs.
override the objectives
of the system of QC?
How often is this
evaluation carried out?
65

Serial no. How and when are the The Firm implements this policy
7 of the Firm’s QC policies and through the following procedures by
Part B(I) procedures shared with having the MP designate a QC
the personnel working partner who is responsible for
in the Firm? Whether designing, implementing and
refresher sessions are monitoring the Firm’s QC system.
taken periodically? The QC partner will ensure that
refresher sessions are taken
periodically so that the QC policies
are ingrained in the culture of the
firm.
Serial no. Designated The Managing Partner (MP) to
1(i) of the Independence and designate an Independence and
Part B(II) Ethics Partner who is Ethic partner who will be responsible
responsible for all for all the aspects. The MP who
aspects of designated such Independence and
independence and Ethic Partner may be the same
ethics of the PUs individual as the designated QC
partners and partner if the Firm so desires.
professional staff The Independence and Ethic Partner
will be empowered to perform such
checks as required to ensure that all
professionals in the firm follow the
policies and any breaches should be
immediately reported to MP who
should take disciplinary action as is
warranted.
Establish system for identifying all
services performed for each client.
Regularly update for any changes in
Independence and Ethics standards
of ICAI
Ensure regular training.
Serial no. If answer to (i) above is Partner as designated by the
1(ii) of the yes, name of the Managing Partner (MP)
Part B(II) Partner
66
Form 1

Serial no. Is the Partner same as The designated independence and
1(iii) of the QC Partner? Ethics partner may be the same
Part B(II) individual as the designated QC
partner, if the Firm so desires.
Serial no. Does the PU maintain a Yes, such entities would normally
2(i) of the list of entities with which include the Firm’s audit and attest
Part B(II) PU personnel and clients. It is important to circulate the
others, if any, are list to all the personnel of the PU so
prohibited from having a that inadvertently or unknowingly, a
financial or business person of PU may not enter into a
relationship? transaction with such entities.
Serial no. Does the PU make the Yes, the PU make the list available
2(ii) of the list available to the to the concerned personnel so that
Part B(II) concerned personnel so they evaluate their independence.
that they evaluate their
independence?
Serial no. Are the changes in the Yes, the changes in the list notified
2(iii) of the list notified to the to the personnel as soon as such
Part B(II) personnel as soon as changes occur.
such changes occur?
Serial no. Does the PU provide Yes, the PU provide frequent
2(iv) of the frequent reminders of reminders of professional
Part B(II) professional responsibilities to personnel, such as
responsibilities to avoiding behaviour that might be
personnel? perceived as impairing their
independence or objectivity.
Serial no. How and to whom the Providing trainings to partner and
3(iv) of the personnel notify of professional staff on what
Part B(II) circumstances and constitutes threats to independence
relationships that cause and promptly report the same to
threat to Independence and Ethics Partner so
independence? that appropriate action can be taken.
Serial no. Does the PU have the The Firm shall establish a personnel
4(iii) of the policy of rotating out rotation policy so that members of
67

Part B(II) senior personnel from the Assurance Engagement Team
the assurance “AET”, including the partner where
engagements after a possible, rotate off the engagement
certain length of service upon rendering assurance services
at a particular for a determined period of time (e.g.,
engagement? If yes seven years).
what is the length of
service?
Serial no. Whether there is a As per SQC Standard – Annexure II,
4(iv) of the policy that the the following is required to be
Part B(II) personnel declare - the followed in case of gifts and
acceptance of gifts & hospitality from clients:
hospitality from • Partner and employees of the
clients/owners? Firm, if they are members of the
AET, should not accept gifts or
hospitality from the auditee,
unless the value is clearly
insignificant.
• If there are any questions

regarding receipt of the gift or
hospitality, the Ethics and
Independence Partner should be
consulted.
The PU should clearly lay down a
policy for non-accepting such
material significant gifts or hospitality
from clients in order to maintain
Independence.
Serial no. Does the PU have the The declaration to be obtained from
4(v) of the policy to obtain annual the personnel on annual basis will
Part B(II) independence determine whether any
declaration from all independence threat has been
personnel? breached.
Serial no. Performing Background Conducting a background check of
2(ii)(b) of checks for the business, the business, its officers and the
68
Form 1

the Part KMP, sister concerns, person(s) in question and evaluating
B(III) and other person(s) in the information obtained regarding
questions management’s integrity. It is
conducted when the Firm is unable
to obtain sufficient information about
the prospective client, or there is an
indication that management or
someone affiliated with the
prospective client may be less than
reputable. This background check is
generally carried out for on boarding
new clients. However, in some
cases, where there are substantial
changes in the management of the
existing clients, it is appropriate to
evaluate the same in light of the new
management.
Serial no. Who evaluates the The Firm evaluates the information
3 of the information about the about the client and gives final
Part B(III) client and gives final approval for acceptance/continuance
approval for of client engagement.
acceptance/continuance
of client engagement?
Serial no. Does the PU have a The PU shall designate individual to
1(i) of the designated individual to be responsible for managing Human
Part B(IV) be responsible for Resource function. Even in case of a
managing Human small firm, where HR may not be
Resource function? separate department, any one
partner can be designated as in
charge for this function. The HR
function is the most critical
component of the PU organisation
as the level of assurance quality will
depend upon the quality of its
personnel and hence HR plays an
important role in achieving this
aspect.
69

Serial no. How frequently the The designated person evaluates
1(ii) of the designated person/ PU the Firm’s personnel needs by
Part B(IV) evaluates the PUs considering factors such as existing
personnel needs? clientele, anticipated growth,
personnel turnover and experienced
personnel.
Serial no. Does the firm maintain The size and circumstances of the
2 of the and monitor the firm will influence the structure of the
Part B(IV) employee turnover ratio firm’s performance evaluation
and identify measures process. Smaller firms, in particular,
to keep it minimal? may employ fewer formal methods of
evaluating the performance of their
personnel. This will enable the firm
to monitor the turnover ratio of
employee and identify the means to
keep it minimal.
Serial no. Does the firm maintain A healthy mix and ratios will enable
3 of the a minimum Staff to proper delegation of the work and
Part B(IV) Partner Ratio, Partner ensure that the quality standards are
to Manager, Manager to adhered to. In case of small firms, it
Articles, Client to Staff may employ a less format system to
ratio, etc. evaluate the same.
Serial no. Does the PU have any The PU is required to implements
6 of the policy for assigning the policy by assigning responsibility
Part B(IV) responsibility for for each engagement to an
engagements to an engagement partner who has the
engagement partner? appropriate capabilities,
competence, authority and time to
perform the role. This applies to a
small firm also. In such cases, the
Engagement Partner may himself
design the responsibility on an
assignment as per quality standards.
It is also imperative to note that the
workload on each engagement
should be such that they have
70
Form 1

sufficient time to adequately
discharge their responsibilities. In
some cases when an Engagement
Partner is overburdened, this may
comprise the quality of the
assurance output.
Serial no. Does the PU have The PU should have the policies and
8 of the policies and procedures procedures for career advancement
Part B(IV) for career advancement such as :
of its personnel? • Assigning responsibility to
partners to jointly make a
decision
• Establishing criteria for
evaluating personnel at each
level
• informing them about the criteria
for advancement
• Designating the personnel
responsible for preparing
evaluation
• Reviewing evaluations on a
timely basis.
Such process will enable to motivate
the team and provide better quality
and continued services of personnel.
This will lead to overall improvement
in the quality standards of the PU.
Frequent changes in personnel and
replacements will require continues
training. This applies to small firms
also as the brain drain is higher in
such smaller firms unless the firm
recognises the reward system for the
personnel.
Serial no. Does the PU conduct PU should conduct pre-assignment
2 of the pre-assignment meeting meeting with the clients, liaison
71

Part B(V) with the clients, liaison office etc. for:
office etc. to understand • Assigning responsibility to
the preparedness of the appropriate personnel.
client to start the
• Developing background
professional functions.
information of the client
• Considering client’s significance
to the firm.
• Developing a planning document
that includes:
(i) Proposed work programs.
(ii) Staffing Requirement
(iii) Consideration of economic
conditions
(iv) Work to be done as per
professional standards
This planned approach and
interaction with the Client before
commencing the Assurance work will
enable the PU to execute the
workflow smoothly and achieve the
desired objective of quality standard.
Serial no. What tool does the PU In this era where soft tools are
8 of the use for maintaining the available for use on electronic
Part B(V) working in electronic media, it has its advantages as well
form? as drawbacks in terms of
accessibility in case of systems
failure of software upgrade. On
needs to take adequate safeguards
to ensure that the drawbacks do not
hamper the data stored in electronic
format. Following are the concerns:
(d) Enable the determination of
when and by whom engagement
documentation was created,
changed or reviewed,
72
Form 1

(e) Protect the integrity of the
information at all stages
(f) Prevent unauthorized changes to
documentation
(g) Allow access to engagement
team and other authorized
parties to properly discharge
their responsibilities.
Serial no. Requiring use of The following controls are required
9(vi) of the passwords by for the purpose of ensuring
Part B(V) engagement team protection for unauthorised use of
members and data the data and safety. Further, the
encryption to restrict same also applies to smaller firms
access to electronic as now electronic data is used by
engagement firms irrespective of its size.
documentation to (h) use of a password among
authorized users engagement team members to
restrict access
(i) Appropriate back-up routines
(j) Procedures for properly
distributing engagement
documentation at start of
engagement
(k) Procedures for restricting access
to confidential documents
Serial no. How does the PU The files are required to be backed
10(ii) of enable retrieval of, and up regularly and check for its
the Part access to engagement validity. Secondly, in case of
B(V) documentation during upgradation of the software, it
the retention period in should be ensured that the present
case of electronic data also gets upgraded to the latest
documentation as the version of software available in order
underlying technology to provide access when required.
may be upgraded or Following aspects need to consider.
changed overtime • Retaining engagement
73

documentation for sufficient period
of time
(l) Establishing procedure that
enable retrieval of and access to
documentation during retention
period
(m) Enable authorised external
parties for review purpose only
Serial no. Are the conclusions The assurance work leads to
14 of the reached properly reaching conclusions relating to
Part B(V) documented? either Financial Statement or the
aspect required to be commented
upon. The conclusion so reached
should be properly documented for
dealing with and resolving
differences of opinion within the
engagement team, with those
consulted and, where applicable,
between the engagement partner
and the engagement quality control
reviewer.
Serial no. What happens if the Firm requires that all differences in
15 of the members of the team judgement in partners would be
Part B(V) continue to disagree resolved by QC partners,
with the resolution? And conclusion reached by them
shall be properly documented.
It should be noted that the report
should not be released until the
matter is resolved.
In case a member of the team
continues to disagree with the
resolution, they may disassociate
themselves from the resolution and
document that a disagreement
continues to exist.
74
Form 1

Serial no. When does the PU Conclusion reached should be
16 of the release the report in properly documented for dealing with
Part B(V) cases where and resolving differences of opinion
differences in opinion within the engagement team and:
exist? (n) all differences in judgement in
partners would be resolved by
QC partners
(o) conclusion reached by them
shall be properly documented.
Serial no. Does the PU have a PU have a policy of having
17 of the policy of having engagement quality review includes
Part B(V) engagement quality considering the following:
review conducted for all (p) engagement team’s evaluation of
audit of financial the firm’s independence
statements of listed (q) Significant risks identified during
entities? the engagement
(r) Judgments made, particularly
with respect to materiality
(s) Whether appropriate consultation
has taken place in case of
differences of opinion
(t) matters to be communicated to
management and TCWG
(u) appropriateness of the report.
Where small firms do not have
suitably qualified personnel or in
case of Proprietorship concerns, the
firm contracts with a suitably
qualified external person to perform
the engagement QC review.
Serial no. Who is responsible to The firm entrusts responsibility for
2 of the evaluate the Quality the monitoring process to a partner
Part B(VI) and Control policies and or partners or other persons with
procedures to ensure sufficient and appropriate
the relevance, experience and authority in the firm
adequacy, effectiveness to assume that responsibility.
75

and appropriateness
with current trends?
Serial no. How frequently are the The MP designates a QC partner
3 of the processes and the who is responsible for designing,
Part B(VI) procedures related to implementing and monitoring the
QC revised? Firm's QC system.
(v) The QC partner's responsibilities
include ensuring that the Firm's
QC policies and procedures and
its methodologies remain
relevant and adequate. Factors
to be considered include the
following:
o Changes in professional
standards or other
regulatory requirements
applicable to the Firm's
practice.
o Results of inspections and
peer review.
o Review of litigation and
regulatory enforcement
actions against the Firm and
its personnel.
o Determining whether
personnel have been
appropriately informed of
their responsibilities for
maintaining the Firm's
standards of quality in
performing their duties.
(w) Identifying the need to do the
following:
o Revise policies and
procedures related to QC
because they are ineffective
or inappropriately designed.
o Improve compliance with
76
Form 1

Firm policies and
procedures related to QC.
Serial no. Which of the following The Firm implements this policy
6 of the monitoring procedure, through the following procedures:
Part B(VI) the PU has in place for (x) Designating one or more
QC: partners to be responsible for
a. Designated performing an annual inspection.
partner/(s) for Inspection procedures include
performing annual reviewing a cross-section of
inspection engagements using the following
b. Deciding how long criteria in selecting
to retain detailed engagements: o Significant
inspection specialized industries with
documentation emphasis on high-risk
c. Reviewing engagements.
correspondence o First-year engagements. o
regarding Significant client
consultation on engagements. o Level of
independence, service performed (that is,
integrity and audit and attest, review, or
objectivity matters compilation).
and acceptance and o Engagements performed by
continuance all partners.
decisions o Engagements for which
d. Preparing summary there have been complaints
inspection report for or allegations from Firm
the partner and sets personnel, clients, or other
forth any third parties that the work
recommended performed by the Firm failed
changes that should to comply with professional
be made to the standards, regulatory
firm’s policies and requirements, or the Firm's
procedures system of QC.
e. Reviewing and o Engagements in which there
evaluating Firm were significant
practice aids, such disagreements between the
as audit programs, quality review partner and
forms, checklists the engagement partner.
77

and considering that (y) Establishing an approach and
they are up to date timetable for performing the
relevant inspection procedures and
f. Reviewing summary determining
of CPED records of The firm should use the following
firm’s professional for the effectiveness of training
personnel program:
g. Reviewing other (z) Providing information during staff
administrative and meetings regarding new
personnel records professional standards,
pertaining to QC regulatory requirements, and the
elements related changes that should be
h. Soliciting made to Firm practice aids.
information on the (aa) Reviewing or designating a
effectiveness of manager-level individual to be
training programs responsible for reviewing the
from the Firm’s CPED policies and procedures to
personnel determine whether they are
appropriate, effective, and meet
the needs of the Firm.
(bb) Reviewing or designating a
manager-level individual to
review summaries of the CPED
records of the Firm's
professional personnel to
evaluate each individual's
compliance with the CPED
requirements of the ICAI.
(cc) Reviewing other administrative
and personnel records pertaining
to the QC elements.
(dd) Soliciting information from the
Firm's personnel during staff
meetings regarding the
effectiveness of training
programs.
78
Form 1
Guidance for filling and checking Part C – Scores obtained by self-

evaluation using AQMMv1.0
To be filled by Practice Unit
[Mandatory Applicable w.e.f 1 st April 2023 for Practice units
conducting statutory audit of listed entities (other than branches of banks and
Insurance companies)]
General Instructions for Scoring: -
• The scoring is either full or zero in quantitative terms and no grading
on quantitative terms are to be done.
• If the firm has implemented something, then it has to get marks. The
implementation has to be in full and not partial.
• The PR (herein after referred to as Peer Reviewer) can make
qualitative recommendations for improvements for the benefit of the
PU (herein after referred to as Practice Unit) in his report as a
separate Annexure to the PRB (herein after referred to as Peer
Review Board) and the PU.
• The Implementation Guide of the Center for Audit Quality on the
implementation of the AQMM available at
https://www.icai.org/post/comparison-aqmm-caq has to be referred
wherever further clarity is required.
• Annexure III of the PRB questionnaire requires the Peer reviewer to
put in his score against the score put in by the PU.
• The peer reviewer is required to go through the entire AQMM
questionnaire and score in totality and test check is not recommended
Guidance for Reviewers on AQMM (Audit Quality Maturity Model)
Brief of the Scoring pattern and the Scheme: -
• The scoring pattern i.e. the total score that can be granted to a firm is
as follows: -
Section Reference Maximum %

Score
Section 1 “Practice management – 280 46.67
Operations”
79
Section Reference Maximum %

Score
Section 2 “Human Resource Management” 240 40.00
Section 3 “Practice Management – Strategic 80 13.33
/ Functional”
TOTAL 600 100.00
• However, each section has its own percentage criteria to be met. The
grading of the firm as per AQMM is the minimum score received in the
Sections.
Overall Score of the PU: -
• At present based on the points derived in each section the level of the
firm is determined. The following table display the basis of scoring as
per AQMM.
• However, if the firm has different scoring in different sections, then the
one with the lowest score is to be considered for the purposes of
overall ranking of the Firm.
Scores Level Narrative

Received
Up to 25% in Level 1 Firm Indicates that the firm is very nascent -will
each section have to take immediate steps to upgrade
its competency or will be left lagging
behind
25% to 50% in Level 2 Firm Indicates firm has made some progress -
each section will have to fine-tune further to reach the
next level of competency
50% to 75% in Level 3 Firm Indicates firm has made substantial
each section progress -will have to fine-tune further to
reach the highest level of competency
75% in each Level 4 Firm Indicates firms that have made significant
section adoption of standards and procedures -
Should focus on optimising further
80
Form 1
Clause wise Guidance on AQMM

Practice Management – Operation
1.1. Practice Areas of the Firm
Competency Basis Score Max Remarks for
Basis Scores scoring
I Revenue from audit and (i) 50% to 8 • Revenue to be
assurance services 75% – considered Net
5 of GST and OPE
Points (out of Pocket
(ii) Above expenses) for
75% – both, numerator/
8 denominator
Points • Revenue to be
considered as
per bills raised
during the review
period.
• Should be for the
last year in the
Review period
ii Does the firm have a For Yes – 4 4 The firm should not
vision and mission Points only have a vision
statement? Does it For No – 0 and mission
address Forward looking Point statement but must
practice also demonstrate
statements/Plans? steps for its
adoption and
implementation. Eg:
posters, internal
communication,
awareness etc.
Total 1.1 12
1.2. Workflow - Practice Manuals
i. Presence of Audit For Yes – 8 8 • The PU or the
manuals containing the Points For reviewer may
firm's methodology that No – 0 Point refer the
ensures compliance with guidance given in
auditing standards and Para 1.2 (i) on
implementation thereof. the
Implementation
81
Guide on AQMM
on what
constitutes an
audit manual.
• Mere existence
of pre-published
checklists is not
to be considered
as an audit
manual
ii. Availability of standard For Yes – 8 8 • These should be
formats relevant for audit Points For easily accessible
quality like - No – 0 Point to all employees
- LOE involved in the
audit exercise.
- Representation
• Whether the
letter
formats are
- Significant working generally used
- Papers by the PU in
- Reports and respect of the
implementation documentation
thereof needs to be
checked by the
Peer Reviewer
as the PR is
required to also
see the
implementation.
Total 1.2 16
1.3. Quality Review Manuals or Audit Tool
i. Usage of Client For Yes – 4 4 These must be
Acceptance/engagement Points For tested by the Peer
acceptance checklists No – 0 Point Reviewer in the
and adequate sample selected by
documentation thereof. them for their file
review.
ii. Evaluation of For Yes – 4 4 • The Peer
Independence for all Points For reviewer is
engagements (partners, No – 0 Point required to
managers, staff, discuss and
trainees) based on the understand what
extent required. The firm methods and
82
Form 1
must identify self-interest processes are

threat, familiarity threat, followed by the
intimidation threat, self- PU for the
review threat, advocacy evaluation of
threat and conflict of Independence.
interest. • The PR may also
refer to the SQC
document of the
PU to see what
policy they adopt
for the evaluation
of the
Independence.
iii. Does the Firm maintain For Yes – 4 4 These must be
and use the engagement Points For tested by the Peer
withdrawal/ rejection No – 0 Point Reviewer in the
policy, templates, etc. sample selected by
them for their file
review.
iv. Availability and use of For Yes – 4 4 This must be tested
standard checklists in Points For out of the sample
performance of an Audit No – 0 Point selected by the PR
for Compliance with to ensure that the
Accounting and Auditing checklists listed as
Standards available are the
ones which are used
subject to
modifications as
may be required
v. Availability and use of For Yes – 4 4 This must be tested
standard formats for Points For out of the sample
audit documentation of No – 0 Point selected by the PR
Business Understanding, to ensure that the
Sampling basis, checklists listed as
Materiality determination, available are the
Data analysis, and ones which are used
Control Evaluation subject to
modifications as
may be required
vi. Are the documents For Yes – 4 4 The PR is required
related to Quality control Points For to go through and
mentioned from (i) to (v) No – 0 Point find out how
83
above reviewed and frequently the SQC

updated on a frequent documents and the
basis (say annually) or policy including the
with each change in the checklists are
respective regulation or updated by the PU.
statute and remedial If there are evidence
action taken? of updation then the
PU scores points.
Total 1.3 24
1.4 Service Delivery - Effort monitoring
i. Does the firm carry out a For Yes – 4 4 The PR must
Capacity planning for Points evaluate on a test
each engagement? For No – 0 check basis out of
Point the sample selected
for the file review
whether the PU has
audit plans and
capacity plans for
the engagement.
ii. Is a process of For Yes – 4 4 The PR is required
Budgeting & Planning of Points For to check if there is a
efforts required No – 0 Point system of budgeting
maintained (hours/days/ and planning and
weeks)? whether in the files
selected the same is
evidenced.
iii. Are Budget vs Actual Up to 10% – 20 • Here the PR may
analysis of time and 0 Point test the score on
effort spent carried out to More than the basis of the
identify the costing and 10% and up entire list of files
pricing? to 30% – 4 selected for
Points sampling and see
if the score
More than
marked on self-
30% and up
evaluation is
to 50% – 8
satisfied in the
Points
sample.
More than • The percentage
50% and up may be
to 70% – 12 considered based
Points on the fees of the
84
Form 1
More than engagement

70% and up instead of the
to 90% – 16 count of
Points engagement. E.g.
More than • if budget vs
90% – 20 actual is evident
Points for the entire
sample, then the
score can be 20
points.
• if out of the
sample a little
over 50% is
satisfied then the
score of the PR
against the score
of the PU can be
12 points.
iv. Does the firm deploy For Yes – 8 8 The PR needs to vet
technology for monitoring Points For the implementation
efforts spent - Utilisation No – 0 Point of the tools for the
of tools to track each specific files
activity (similar to Project selected in the
management - Say sample for file
timesheets, task review.
management, etc.)?
Note: DCMM Version 2
may be referred to arrive
at the technical maturity
of the firm/ CA.
Total 1.4 36
1.5 Quality Control for engagements
i. Does the firm have a For Yes – 8 8 Out of the sample
Quality Review for all Points For selected by the PR
listed audit engagements No – 0 Point for the file review,
as per para 60 of the this has to be
SQC1? verified for the
Is there a document of Listed audit
time spent for review of engagements.
all engagements?
ii. Total engagements Up to 10% – 20 • Of the above this
85
having concluded to be 0 Point has to be verified

satisfactory as per More than for confirming the
quality review vs No of 10% and up scoring done on
engagements quality to 30% – 4 self evaluation by
reviewed Points the PU.
More than • Care should be
30% and up taken that
to 50% – 8 engagement of
Points the same nature
are to be
More than
considered for
50% and up
arriving at the
to 70% – 12
percentage.
Points
More than
70% and up
to 90% – 16
Points
More than
90% – 20
Points
iii. No. of engagements 10% to 30% 20 • There could be
without findings by ICAI, – 4 Points instances wherein
Committees of ICAI and More than PU have not
regulators that require 30% and up subjected to any
significant improvements to 50% – 8 external reviews
Points by committees of
More than ICAI (other than
50% and up Peer Review) or
to 70% – 12 regulators. In such
Points cases, the PU/PR
should consider
More than
them as more
70% and up
than 90% and
to 90% – 16
grant full marks.
Points
• All
More than
communications
90% – 20
received during
Points
the PR Cycle,
irrespective of the
period to which it
relates, are to be
considered.
86
Form 1
• The self-
declaration under
clause 14 of Part
B(II) of the
Questionnaire (i.e.
Form-1) may be
referred for
confirming if the
PU has received
any
communication
during the PR
cycle.
v. Does the firm have For Yes – 8 8 • Apart from having
Accounting and Auditing Points For the access to
Resources in the form of No – 0 Point auditing standard
soft copies of archives and accounting
Q&As, firm thought standards, the PU
leadership, a dedicated/ is required to have
Shared Technical desk? a dedicated /
shared technical
desk.
• An identified
resource within
the PU will be
sufficient
compliance to the
requirement of the
dedicated desk.
• The PR may
enquire with the
PU whether they
have internal
resource / library
or do they access
the ICAI website.
• Organisation wide
awareness must
be there of the
availability of the
resource.
vi. Is appropriate time spent For Yes – 12 • The PR is
on understanding the 12 Points required to
87
business, risk For No – 0 enquire into and

assessment and Point see the
planning an documentation for
engagement? compliance to this
Have risks been requirement and
mitigated through judge whether
performance of audit adequate time is
procedures? spent.
• Discussions with
the Engagement
team will also
evidence the
understanding
gathered by the
team.
Total 1.5 80
1.6 Benchmarking of service delivery
i. Does the firm follow/ For Yes – 4 4 This matter has
implement Standard Points For been discussed
delivery methodology – No – 0 Point earlier too and here
the adoption of audit the PR is required to
manuals, adherence to ensure that the
practice standards and policy and
tools? procedures
prescribed by the
PU is followed also
by the firm.
ii. The number of statutory Less than 0 • This is negative
audit engagements re- 5% – 0 scoring where the
worked (filing errors, Point PR is required to
information insufficiency, More than enquire and
wrong interpretation of 5% to 15%: assert from the
provisions, etc.) (-1) Point PU the number
assignments of
More than
statutory audit
15% to
where they were
30%: (-2)
required to re-
Points
work after the
More than issuance of the
30% to report.
50%: (-3)
• A Management
Points
Representation
88
Form 1
More than 50%:from the PU

(-4) Points managing partner
may also be kept
on record.
• This is applicable
only to the
Statutory audit
and the negative
marking is to be
given only if it is
due to the error of
the PU and not
where there are
changes in the
Financial
Statements which
are attributable to
the client of the
PU.
• Typically, re-
issuance of the
audit report is an
example
iii. Number of client Less than 0 This is also for
disputes (other than fees 5% – 0 negative scoring.
disputes) and how they Point Here also the PR is
are addressed. More than required to obtain
5% to 15%: declaration from the
(-1) Point PU about such client
More than issues and disputes
15% to which may or may
30%: (-2) not be referred to
Points the DC of the ICAI.
More than
30% to
50%: (-3)
Points More
than 50%:
(-4) Points
iv. Is the timing of audit For Yes – 12 • This is more of an
interactions with 12 Points enquiry-based
management planned in For No – 0 review where the
89
such a way that Point PR is to enquire of

integrates with the any Board
auditor’s requirements so meetings or
that audit timelines can deliverable dates
be met? [Review were postponed
frequency of back-log, due to the non-
engagement agreed completion of the
upon and not audit by the PU.
commenced, WIP, etc. • The PR may refer
(Excl. of client-side to IG for further
delays)] guidance in the
matter.
• Client-side delays
are to be excluded
for this scoring.
• The PU gets 12
points if there are
no cases and 0
even if there is
one case.
• If any listed client
of the PU has filed
for extension to
stock exchange
stating audit is not
concluded, then
the matter is to be
enquired into.
Total 1.6 16
1.7 Client Sensitization
i. Awareness meetings and For Yes – 8 8 • The PU scores
Knowledge Points For here if there is a
dissemination meetings/ No – 0 Point system of client
articles/document updation of
sharing with clients changes in audit
including: issues, accounting
1) Updating client on and legal updates
audit issues, etc.
formally- • Many PU have a
effectiveness of the system of a note
process of being sent to the
communication with clients. Such PU
management and will score
90
Form 1
those charged with • Many engagement

Governance; teams have slides
2) Updating client on of Legal and
changes in regulatory
accounting, legal, updates in their
audit aspects, etc. communication
with client specific with those
impact; and charged with
3) Follow through on governance as
previous audit required by SA-
observations and 260.
updates to • These documents
management and and
those charged with communications
Governance. would evidence
the eligibility of
scoring here.
• If there are one or
two matters not
updated would not
disentitle the PU
from scoring if
there is a process
of
communications.
ii. Monitoring planned For yes – 8 8 This is a repetitive
hours vs actual hours Points For point and has
across engagement; the No – 0 Point already been
focus is on the existence covered earlier and
of a monitoring needs no further
mechanism explanation.
Total 1.7 16
1.8 Technology Adoption
(i) Technology adoption at
Office –
• Internal For Yes – 4 4 Dedicated whatsapp
communication – Points For or teams chat client
chats No – 0 Point wise or assignment
wise would-be
adequate
compliance to score.
91
• Has the firm For Yes – 4 4 Automated leave

automated its office Points For and attendance
with automated No – 0 Point system would entitle
Attendance System scoring here.
and Leave
management?
• Project or activity For Yes – 4 4 • Existence of time
management/ Points sheets would
Timesheet For No – 0 entitle scoring
management, Point here.
• Although this
section is
technology
adoption a robust
manual system of
time sheet should
be fine
• Digital storage of For Yes – 4 4 If the PU has a
records (scan, etc.), Points digital system for
For No – 0 storing records it
Point scores.
• Centralised server/ For Yes – 4 4 Having cloud server

Cloud Points would result in
For No – 0 scoring here.
Point
• Digital Library (Own For Yes – 4 4 Digital Library of
or ICAI) Points own or a link to ICAI
For No – 0 library would suffice
Point scoring
requirements.
At present ICAI does
not have a digital
library therefore only
if own is there
scoring is allowed.
• Client interaction For Yes – 4 4 This is similar to the
(Alerts, updates, Points communications
availability of For No – 0 discussed in the
information in Point earlier section.
website, etc.),
92
Form 1
• Video conferencing For Yes – 4 4 Knowledge of Zoom

facilities adopted, Points and teams video
For No – 0 conferencing facility
Point should be adequate
to grant points here.
• Does the firm use For Yes – 4 4 Existence of

only licensed Points licensed software for
operating system, For No – 0 MS office, Windows,
software etc.? Point adobe etc entitle the
firm to have 4 points
• Own E-mail For Yes – 4 4 Having own domain

domains, E-mail Points name and having
usage policies, etc. For No – 0 email usage policies
Point entitle 4 points
score.
if the firms works
with gmail accounts,
Hotmail accounts it
is not eligible for a
score here
• Use of anti-virus For Yes – 4 4 The PU must have

and malware Points updated anti-virus
protection tools, For No – 0 protection tools
Point For which must be
No – 0 Point licensed on all the
computer and
laptops.
• Data security, etc. For Yes – 4 4 There must be

Points password and
For No – 0 access control over
Point the PU’s Data
• Cyber security For Yes – 4 4 This is advanced

measures Points port controls over
For No – 0 the access to the
Point cloud or in-house
server.
ii. Awareness and For Yes – 12 Use of audit tools

Adoption of 12 Points like IDEA and
Technology for Service For No – 0 CaseWare and other
93
delivery – Say, use of Point analytical tools will

Audit tools, usage of grant 12 points here.
analytical tools, use of
data visualisation tools
or adoption of an audit
tool. Note: DCMM
Version 2 may be
referred to arrive at the
technical maturity of
the firm/ CA.
Total 1.8 64
1.9 Revenue, Budgeting & Pricing
i. Whether the client wise For Yes –4 4 • The code of ethics

revenue is in Points For is modified w.e.f.
compliance with the No – 0 Point October 1, 2022
Code of Ethics as per which
(currently fees from where the fees
one client should not from an assurance
exceed 40% of total client being PIE
revenue unless (Public Interest
safeguards are put in Entity) is more
place) and once the than 20% of the
deferred clauses of total fees there is
Part A are implemented deemed to be a
this will be reduced to threat.
15%. • As per the Code
of ethics the PU is
required to report
to ICAI the
information of the
client where the
fees are more
than 20% for two
years. The PU will
get 4 points if
does not have any
such client.
• The definition of
PIE is to be as per
the Code of Ethics
94
Form 1
ii. Fee considerations and Yes –8 8 The SQC document

scope of services Points For of the PU should
should not infringe No – 0 Point adequately address
upon the quality of this.
work and Being subjective this
documentation as matter is not easy to
envisaged in SQC 1 vet.
under Leadership is
responsible for quality
within the firm.
iii. Adherence to a For up to 4 If the PU is able to

minimum scale of fees 50% of the adhere to minimum
standards engagement fees for more than
recommended by ICAI s- 2 Points 50% then it shall
For More score full marks.
than 50% of The PU’s fee
the register may be
engagement reviewed to
s – 4 Points determine the
For None – compliance.
0 Point
Total 1.9 16
Human Resource Management

2.1. Resource Planning & Monitoring as per the firm's policy
i. Does the firm have a For Yes – 4 4 If the SQC
process of Employee/ Points For No document and the
Resource Planning for – 0 Point Audit planning
the engagements based document mandates
on skill set requirement, the team
experience, etc.? composition the PU
should get 4 points.
ii. Methods/Tools used by For Yes – 4 4 This is a repetitive
the firm for Resource Points For No point and if the PU
Allocation (use of – 0 Point already satisfies in
spreadsheets, work flow earlier paras the PU
tools, etc.) gets 4 points.
95
iii. Is there a method of For Yes – 4 4 • The IG speak

tracking the employee Points For No about
activity, to identity – 0 Point productivity vis-
resource productivity a-vis the
(e.g., timesheet)? available hours.
E.g.: if the
employee on a
average spends
5 hours out of 8
hours on client
work his
productivity will
be 5/8*100.
• If the PU
monitors such
data then it shall
get 4 points.
iv. Does the firm maintain a For Yes – 8 8 This ratio is to be

minimum Staff to Partner Points For No maintained
Ratio, Partner to – 0 Point engagement wise. If
Manager, Manager to the SQC document
Articles, Client to Staff specifies that for a
ratio, etc. particular type of
audit the minimum
ratio of Partner,
manager to staff
then it should be
sufficient
compliance to get 8
points.
The PR may vet this
information if
available.
v. Does the firm monitor the For Yes – 4 4 If the PU has such
Utilisation & Realisation Points For No data then it shall be
rate per employee – 0 Point entitled to 4 points.
96
Form 1
vi. Does the firm document For Yes – 4 4 This is similar to

the resource plan for Points For No what is stated above
each engagement and – 0 Point and if the PU has an
file it for reference during Audit plan then it
the engagement? should be sufficient
compliance
Total 28
2.2. Employee Training & Development
i. Does the firm have an For Yes – 4 4 The PU must have a

employee training policy? Points training policy as
For No – 0 part of its SQC
Point policy
ii. Number of Professional 60 hours per 24 • The PU must

Development hours/days year for ensure training of
spent (Frequency) as a junior- level: 2 the required
firm – per employee Points for hours as per the
general levels of staff.
training and 6 • Junior level
points for would mean Non-
specialised CAs including
technical article clerks
training
• Mid level would
30 - 60 hours mean qualified
per year for assistants
mid- level: 2
• The PU must
Points for
maintain records
general
of the training
training and 6
given as required
points for
by the AQMM.
specialised
technical • The ratio of
training specialized
training to
More than 30
general training
hours for
can be 25:75.
partners: 2
Points for • General training
general would include
97
training and 6 soft skills and

points for basic etiquette
specialised training.
technical
training
iii. Employees are equipped Use of 8 • The PU would

with technological skill Analytical get 8 points if it
sets Tools for the has imparted
– AI, Blockchain, Audit & listed entity, training or its
Data analytical tools, etc. Banks other employees and
and sponsored by the than co- partners have
firm to develop the same: operative knowledge AI
banks (except and Block chain.
1. Knowledge of
multi-state • It is not
technological skill
co- operative necessary that
sets will be more
banks) and everyone has
relevant for large
Insurance such training and
audits (Like Audit
Companies if some of them
Engagements of
audit have attended
Listed entity, Banks
engagements: seminars on this
other than co-
operative banks For Yes – 8 matter it should
(except multi-state Points For No be sufficient
co- operative banks) – 0 Point / NA compliance to get
and Insurance 8 points.
Companies etc.). • Further audit and
H data analytical is
ence, the question also included.
should be relevant • So the firm which
only for such audit has access to
engagements. audit and
2. The audit Teams analytical tools
should be aware of would get points
Data Analytics Tools on this matter.
and comprehend the
results of the tools to
adjust the audit
strategy.
3. Technologies like AI
98
Form 1
and blockchain may

be considered as an
incremental factor for
differentiation
purposes, if the firms
are scored at the
same level.
iv. Whether the firm has a For Yes – 8 8 The PU scores if it
performance Points For No has appraisal plans
management culture that – 0 Point which it implements
rewards high performing and follows them
employees and those
who demonstrate high
levels of quality and
ethics?
Total 2.2 44
2.3. Resources Turnover & Compensation Management
i. Does the Firm evaluate a For Yes – 8 8 This point is similar
team composition overall Points For No to earlier issue of
to build the Team – 0 Point having a mandated
Strength - say, Number requirement of
of Managers, Assistant minimum team size
Managers, Paid for certain types of
Assistants, Article audit engagements.
Assistants, Other Degree
holders?
ii. Does the firm maintain For Yes – 8 8 • This issue is self-
and monitor the Points For No explanatory. If
employee turnover ratio – 0 Point the records are
and identify measures to maintained the
keep it minimal? same should be
sufficient
compliance.
• This ratio is to be
kept for the last
year of the
review period.
iii. Qualified professionals 10 and above 20 • This is statistical

retained by the – 20 Points information as
99
firm (resources available 8 to 9 – 16 on the last day

to a partner) Points of the review
6 to 7 – 12 period.
Points • Depending upon
4 to 5 – 8 the numbers the
Points points will be
scored.
Up to 3 – 4
Points
iv. Does the firm evaluate For Yes – 4 4 If records are

the Employee relation Points For No maintained, then the
with the firm (No. of – 0 Point PU scores.
Professionals vs. No. of
years employed with
firm) to identify reasons
for turnover if
any?
v. Statutory contributions For Yes – 8 8 • If the PU has

wherever applicable, Points For No health insurance
Health – 0 Point and other
Insurance and other benefits then the
benefits, available in the PU scores.
firm for staff members • It is not
and partners necessary that
all employees
should be
covered but
sufficiently large
number of
employees must
be covered.
vi. Does the firm evaluate For Yes – 4 4 The PR must look at
for which kind of audits Points For No the IG for the
does it have a revolving – 0 Point meaning of revolving
door (between different door.
engagements) for people
below partner level?
100
Form 1
vii. Progress of people For Yes – 8 8 If there is detailed

through an established Points For No performance
framework and time – 0 Point appraisal policy
commitment of Managers where the employee
and Partners – has clear
Engagement level review understanding that
and overall performance performance is
evaluation and rewards rewarded the PU will
mechanism for score.
differentiated
performance levels
viii. Access and use of For Yes – 8 8 If the PU has IT

technology, Points For No infrastructure of
infrastructure, – 0 Point laptops , desktops,
methodology for better software tools
enablement of day-to- including Zoom and
day work / including MS Teams
favorable remote working connectivity the firm
policies should score on this
point.
ix. Coaching and mentoring For Yes – 8 8 If the Gender

program investment, Points For No diversity is good
especially for women – 0 Point where atleast 33%
colleagues to enhance are women and
the diversity of audit there are mentoring
leaders in the profession plans for them the
firm should score on
this.
x. Special policies to For Yes – 4 4 The Firm should

provide people time to Points For No encourage breaks
rejuvenate especially – 0 Point after busy season to
after busy audit seasons score on this count.
xi. Focused policies and For Yes – 8 8 Whether any plans

support for staff well - Points are in place for
being, engagement and For No – 0 employee well being
communication Point like special transport
arrangements etc.
101
xii. An established For Yes – 8 8 The appraisal

mechanism to listen to Points For No process can have
people and their views – 0 Point employee feedback
and suggestions. etc.
Credible Employee Suggestion box and
survey and its outcome feedback forms may
demonstrate how well be an option for
people are taken care of scoring.
and heard.
xiii. Standards of recruiting For Yes – 4 4 IG of AQMM may be

people – Assessment Points For No explored for
methodology, evaluation – 0 Point assessment
of quality and fitment to
the job and culture
xiv. Are the employees of the For Yes – 4 4 IG of AQMM may be

firm compensated as per Points For No explored for
a defined approach – 0 Point assessment
where salary is mapped
to the knowledge and
experience level of the
employee?
Total 2.3 104
2.4. Qualification Skill Set of

employees and use of
Experts
i. Number of Professionally Upto 30% – 4 12 This is similar to the

qualified members – Points earlier point of
ACA/FCA More than qualified assistants
If evaluation is being 30% to 50% – in the PU.
done for a firm that 8 Points Depending upon the
primarily offers Statutory Above 50% – ratio the firm should
and Tax Audit Services 12 Points score here.
then only ACA / FCA
should be considered for
evaluation purposes.
102
Form 1
ii. Post Qualification Applicable – 8 8 • If there are DISA

Certifications obtained Points Not qualified partner
from professional bodies Applicable – 0 or employee then
or similar organisations Point the firm should
(DISA, IP, etc.) score on this
DISA and IP are courses count.
that are required in • The IG says
Information System where firms are
Audits. not involved in
If qualified resource is any Information
not available in the firm, systems
whether the services of audit/engagemen
expert are taken? ts with complex
IT systems
Whether all partners
should not be
have complied with CPE
rated for this
requirements of ICAI?
competency
iii. Members with Upto 30% – 4 12 • Statistical
Specialisation courses or Points Information of
Certifications – (Ranking 30% to 50% – the Staff.
can be based on newer 8 Points • PU will score on
areas or international Above 50% – the basis of the
qualification – say, Dip. 12 Points data as on the
IFRS last day of the
or Firm Ind AS / IFRS review period.
Accreditation
Requirements, etc.)
Total 2.4 32
2.5 Performance evaluation measures carried out by the firm (KPI’s)
i. Does the firm have For Yes – 8 8 If the PU has written
written KPIs for Points KPIs the PU scores
performance evaluation For No – 0
of the firm and partners? Point
ii. Method for measurement For Yes – 8 8
and evaluation as Points For No
mentioned above (i) are – 0 Point
determined / specific.
103
iii. There is a decided For Yes – 8 8 The frequency

frequency for the Points For No should be specific
evaluation and is – 0 Point and applied
consistently applied consistently
iv. Are engagement partners For Yes – 8 8 If the answer is in
reviewed based on the Points For No affirmative then the
review results of the – 0 Point PU scores points.
engagements of each
partner
Total 2.5 32
Practice Management – Strategic/Functional
3.1 Practice Management
Does the firm Manage

the following attributes
relating to Assurance
partners to maintain the
same at optimum levels
as deemed fit for the
respective
organisations?
i. Does the firm have a For average 8 • Experience

balanced mix of partner should be
experienced and new experience of considered as a
Assurance partners? partners > 5 partner/proprieto
years – 4 r in practice
Points irrespective of
whether they
For average
have been with
partner
the same firm or
experience of
not.
partners > 10
• Since the marks
years – 8
are given based
Points
on partner
experience, any
experience prior
104
Form 1
to obtaining
Certificate of
Practice should
not be
considered for
such
experience
• Partners
conducting
assurance
practice should
be considered.
ii. Is the firm compliant with For Yes – 8 8 This should be
the ICAI Code of Ethics, Points For No based on enquiries
Companies Act 2013 and – 0 Point of the major audits
other regulatory
requirements in relation
to Professional
Independence and
Conflict of Interest?
iii. Is there is a 'whistle For Yes – 4 4 Based on whistle
blower' policy? Points blower policy being
For No – 0 in place
Point
Total 3.1 20
3.2 Infrastructure – 8
Physical & Others
i. Number of Branches & Upto 3 – 2 Where there is only
Associates and Points one office of the firm
network firms and 4 to 7 – 4 it should be
affiliates Points considered as upto
3.
8 to 15 – 6
Points
More than 15
– 8 Points
ii. Are branch level Centralised – 8 Factual answer.

activities Centralised/ 8 Points If there is no branch
105
Decentralised in Decentralised then the PU will get

accounting, Invoicing, – 4 Points 8 marks as the
and Payroll processing accounting and
invoicing will be at
one place.
iii. Physical & Logical For Yes – 8 8 PR may refer to the

Security of Information Points IG for the
are extended and For No – 0 parameters.
implemented across Point
locations?
iv. Are there adequate DA For Yes – 12 12 This is a repetitive

tools and IT Points point and based on
infrastructure available For No – 0 factual position of
and are they being Point the availability of the
used for the relevant tools the PU will get
assignment? the score.
v. Is the infrastructure For Yes – 12 12 Depending upon the

adequate in terms of Points bandwidth, there is
internet/intranet For No – 0 guidance in the IG
network bandwidth/ Point as to what is
VPN/Wi-Fi etc. for considered as
remote working? adequate.
Based on that if the
bandwidth is
adequate the PU
scores else it will be
Zero.
3.3 Practice Credentials
What are the

credentials of the firm
that distinguish the
firm or stands as
testimony to the quality
of the firm?
i. Is the firm ICAI Peer For Yes – 4 4 Factual Answer

Review certified? Points
106
Form 1
For No – 0
Point
ii. Empanelment with RBI For Yes – 8 8 Factual Answer
/ C&AG Points
For No – 0
Point
iii. Is there an advisory as For Yes – (-5) 0 Factual Answer

well as a decision, to Points
not allot work due to For No – 0
unsatisfactory Point
performance by the
CAG office?
iv. Have any Government For Yes – 0 Factual Answer

Bodies/ Authorities (-10) Points
evaluated the For No – 0
performance of the firm Point
to the extent of
debarment/
blacklisting?
v. Any negative For Yes – (-5) 0 Factual Answer

assessment in the Points For No
report of the Quality – 0 Point
Review Board?
vi. Has there been a case For Yes – (-5) 0 Factual Answer
of professional Points For No
misconduct on the part – 0 Point
of a member of the firm
where he has been
proved guilty?
Total 3.3 12
Grand Total 600
Level of Firm (Refer Note 3)
107
Form 2
Acceptance cum Declaration of
Confidentiality to be Submitted to
the Practice Unit
As per Clause 32 of the Peer Review Guidelines, 2022, strict confidentiality
shall be maintained by all those involved in the Peer Review process,
namely, Reviewers, members of the Board, Peer Review Secretariat,
qualified assistants and the Practice Unit.
As per Clause 6(7) of the Peer Review Guidelines 2022, the Board shall
intimate the Reviewer so selected to submit a Declaration of Confidentiality
in Form 2 to the Practice Unit within two working days from the receipt of
choice of name of the Reviewer from the Practice Unit. On receipt of name of
the reviewer, the Board intimates the Reviewer and the PU about the
initiation of Peer Review process with an instruction to the Reviewer to
submit the Declaration of Confidentiality in Form 2 to the Practice Unit. The
Practice Unit shall confirm receipt of same in Form 9 along with confirmation
of receipt of report from the Peer Reviewer.
Hence Form 2 is the acceptance cum Declaration of confidentiality to be
submitted by the Reviewer as well as his qualified Assistant, if any to the
Practice Unit before commencement of Peer Review.
The Form has to be addressed to the Practice Unit mentioning the name and
Firm Registration Number of the PU.
Form 2
FORM 2
Acceptance cum Declaration of Confidentiality
(To be Submitted to The Practice Unit)
[As per Clause 6(7) of the Peer Review Guidelines 2022]
To
M/s/CA. ….,
FRN/ Mem. No. :….
Sir,
(A) With reference to selection of my name for conducting peer review of
M/s/CA. …………………………………………………………………….,
FRN/Mem.No.:…..……………., I hereby convey my acceptance for the
same.
(B) I also hereby declare that I am aware of the need for confidentiality in
the conduct of peer reviews. I undertake and promise that in so far as
any or all of the following relate to me or are brought to my
knowledge/attention, in any manner whatsoever and when so ever, I
shall ensure that:
• Full Confidentiality of the Working papers shall always be maintained
at all times so that unauthorized access by any means (including
electronic means) is not gained by anyone.
• The practice unit’s assurance services procedures shall not be
disclosed to third party except as provided under the Peer Review
Guidelines 2022.
• Any information with regard to any matter coming to my knowledge in
the performance or in assisting in the performance of any function
during the conduct of peer reviews shall not be disclosed to any
person except as provided under the Peer Review Guidelines 2022.
• Access shall not be given to any person other than as required under
the Peer Review Guidelines 2022, to any record, document or any
109
other material, in any form which is in my possession, or under my

control, by virtue of my being or having been so appointed or my
having performed or having assisted any other person in the
performance of such a function.
• I or any of my partners have no obligation and no direct or indirect
conflict of interest with the Practice Unit.
• I shall not accept any professional assignment from the Practice Unit
for a period of two years from the date of appointment. Further, I have
not accepted any professional assignment from the Practice Unit for a
period of two years before the date of appointment as reviewer of the
Practice Unit.
• No Disciplinary action / proceeding are pending against me.
• I have not been found guilty of professional or other misconduct by the
Council or the Board of Discipline or the Disciplinary Committee at any
time.
• I have not been convicted by a Competent Court whether within or
outside India, of an offence involving moral turpitude and punishable
with imprisonment.
• I have not undergone training/articleship under any of the partner of
Practice Unit
• I was not a Partner of the said Practice Unit.
I understand that any breach of the provisions regarding confidentiality
as contained in the Peer Review Guidelines 2022 will be considered
as gross negligence and make me liable for appropriate disciplinary
action.
(C) If appointed,
I confirm that I will not use any qualified assistant for carrying out the
peer review
Or
110
Form 2
The declaration of Confidentiality of Qualified Assistant used for the peer

review shall be submitted with the Practice Unit before start of peer review.
Regards,
Signature :
Name :____________________
Membership No.: ____________
Email ID:___________________
Mobile No.:_________________
Period of Review:_______________
Date: _____________
Place: ____________
Note: To be submitted on Mail ID :…… (Email ID of PU)
111
Form 3
Application cum Declaration for
Empanelment as a Peer Reviewer
As per Clause 27(3) of the Peer Review Guidelines, 2022, a member eligible
to act as a Peer Reviewer shall make an application for enrolment as a Peer
Reviewer with the Board in the prescribed Form 3. Accordingly, after a
member has attended the training and cleared the online test organized by
the Board, he shall make an application to the Board in Form 3. The eligibility
criteria of the member is verified by the Peer Review Secretariat from the
particulars filled by the member in the said form. The member should also
submit a signed copy of Declaration of confidentiality as per clause 27(4) of
the Peer Review Guidelines which is a part of Form 3 to the Board.
Members having only Assurance practice experience should mention NA
under clause 13 and 14. In case, if the member has no experience of
conducting audit of Listed entity, he should mention Not Applicable (N.A.)
under clause 12 (ii). Further, in case a member has both practice and
industry experience he should fill the required details under clauses 10 to 14.
Form 3
FORM 3
APPLICATION CUM DECLARATION FORM FOR EMPANELMENT AS A
PEER REVIEWER
APPLICATION
The Secretary, Peer Review Board,
The Institute of Chartered Accountants of India,
ICAI Bhawan,
Post Box No. 7100,
Indraprastha Marg, New Delhi – 110002
Dear Sir,
1. I ………………………………………………………………... (Name of
Member as per ICAI Records) ; M. No. ………. (as per ICAI records)
would like to apply for Empanelment as a Peer Reviewer.
2. I have attended the training Programme organized by the Board
physically/ through VCM on ……………… and cleared the test
organized by the Peer Review Board held on ………………
3. I have attended advanced training organized by the Board physically/
through VCM on ……………… and cleared the advanced test
organized by the Peer Review Board held on ………………
4. I have gone through the Peer Review Guidelines 2022 hosted at
https://resource.cdn.icai.org/72010prb57960-peer-review-guidelines-
2022.pdf And undertake to abide by the same.
Other information is as follows:
5. Mobile No. (as per ICAI records)
6. Present Communication Address
(as per ICAI records):
113
7. E-mail Address: (as per ICAI records):
8. Telephone (Landline) Number (optional):
9. Date of COP:
D D M M Y Y Y Y
Y Y M M
10. No. of years Audit and assurance service
experience in Practice (in signing capacity only)
11. Details of practicing experience
Sr Firm Name FRN Nature of industry Type For the
No. (banking/insurance/ assurance year
others please specify.) service
12. (i) Have you experience of statutory audit of :

A listed entity YY MM
(ii) If Yes, provide the following details:
Sr Name of listed Entity Financial Year(s) for which the

No. statutory audit of listed entity has
been conducted?
13. Number of years of experience for Audit &Assurance services as a

member of the team, while working in employment:
Y Y M M
114
Form 3
14. Details of experience in employment:

S. Job Title/ Name Worked Worked Listed on Nature
No Designati of the from Till (Date) any Stock of
. on Compa (Date) Exchange Industr
ny (Yes/ No) y
Annexure: Declaration
Signature
Name ………………….
Date …………………
115
Annexure
DECLARATION
I hereby declare that:
1. I am a practicing member of the Institute,
2. (i) I possess minimum Seven Years’ cumulative experience of audit
& assurance services and am currently active in the practice of
accounting and auditing or;
(ii) I have moved from employment to Practice and I have more
than Ten years’ of audit experience in employment,
3. I have not been convicted by a competent court whether within or
outside India, of an offence involving moral turpitude and punishable
with imprisonment or of an offence, not of a technical nature,
committed by me in professional capacity
4. I have no objection if my profile being provided to the practice unit
which selects my name for conducting Peer Review, if asked for it;
5. I have not been found guilty of professional or other misconduct by the
Council or the Board of Discipline or the Disciplinary Committee at any
time.
6. That no disciplinary action/proceeding is pending against me at
present and I will immediately intimate to the Board at
[email protected], if any Disciplinary Action is initiated against
me or against Qualified Assistant (if used during particular Peer
Review), in future.
7. In case of removal of my name from the register of members or
withdrawal of certificate of Practice by me, I shall immediately inform
the same to the Board.
8. Full Confidentiality of the Working papers shall always be maintained
at all times so that unauthorized access by any means (including
electronic means) is not gained by anyone.
9. The practice unit’s assurance services procedures shall not be
disclosed to third party except as provided under the Peer Review
Guidelines 2022.
10. Any information with regard to any matter coming to my knowledge in
the performance or in assisting in the performance of any function
116
Form 3
during the conduct of peer reviews shall not be disclosed to any

person except as provided under the Peer Review Guidelines 2022.
11. Access shall not be given to any person other than as required under
the Peer Review Guidelines 2022, to any record, document or any
other material, in any form which is in my possession, or under my
control, by virtue of my being or having been so appointed or my
having performed or having assisted any other person in the
performance of such a function.
I understand that any breach of the provisions regarding confidentiality as
contained in the Peer Review Guidelines 2022 will be considered as gross
negligence and make me liable for appropriate disciplinary action.
Signature:
Name:
Date:
117
Form 4
Declaration Form to be submitted by
Board members and Secretariat
As per Clause 32 of the Peer Review Guidelines, 2022, Strict confidentiality
shall be maintained by all those involved in the Peer Review process,
namely, Reviewers, members of the Board, Peer Review Secretariat,
qualified assistants and the Practice Unit. Accordingly, this form has to be
filled only by Board members and the Peer Review Secretariat.
FORM 4
DECLARATION FORM
(To be submitted by Board members and Secretariat)
I _________________________________ (name of the member), S/o or D/o
_________________________________ having membership number 1
_________________________________ of the Institute of Chartered
Accountants of India, declare:
That I shall keep all the matters referred to me as well as any other
information, papers, documents, etc, received by me during the course of the
review, confidential.
That I shall not make or cause to be made any communication between
myself and the reviewer of the Practice Unit whose assurance services are
under review;
That I shall consider conflict of interest, if any, on each occasion I have to
conduct a review or am asked to advice on a case;
That in case where a conflict of interest exists, I shall inform the Board;
That I shall refrain myself from participating in the discussion on the case
and shall not be entitled to vote in case where conflict of interest exists; and
1 To be filled in by the Members of the Institute.

Form 4
That I shall maintain the confidentiality in relation to the matters of the Board.
…………………………………
(Name and signatures of the Member of the Board)
………………………..
(Date)
………………………………………….
………………………………………….
………………………………………….
(Professional Address)
………………………………………….
(Telephone)
……………………………………
(Fax)
………………………………..
(Email)
119
Form 5
Notice by Peer Reviewer for visiting the
office of the Practice Unit
As per Clause 7(2) of the Peer Review Guidelines, 2022, on receiving the
Application cum Questionnaire in Form 1 from the Practice Unit, the Peer
Reviewer shall initiate the Peer Review by intimating the Practice Unit of
proposed visit and the proposed samples selected to be kept ready by the
Practice Unit. The proposed samples selected are to be intimated by the
Peer Reviewer in Form 5. The Reviewer shall, within two working days of
receiving the information from the Practice Unit, select assurance service
engagements that he would like to review and intimate the same to the
Practice Unit and the Peer Review Board in Form 5.
In the form the reviewer should inform the Practice Unit:
1. The proposed date of visit to the PU office
2. Files pertaining to assurance clients selected out of the list provided to the
Reviewer under clause 22 A to K of Part A of the Questionnaire which is to
be kept ready by the Practice Unit pertaining to the samples to be reviewed
by him as well as any other document maintained by the PU on the basis of
information furnished by the Practice unit in Form 1- questionnaire.
Form 5
FORM 5
Notice by Peer Reviewer for visiting office of the Practice Unit
To,
Name of Partner of PU:
This is regarding the Peer Review of the Firm ……………. for the period
…………….…
This is to inform you that I plan to visit your office on ……………. [proposed
date of visit]
Further on going through the questionnaire submitted by you, you are
requested to keep ready the files pertaining to the Following Clients so that I
may review them on visiting your office:
S. No. Name of Client F.Y.
Thanking you,
Signature :
Name : ____________________
Date : ____________________
1Alternate dates may be given to the Practice Unit, if the PU is not ready
with the required records or for any other reason.
121
Form 6
Format for Seeking Additional
Information from the Practice Unit by the
Reviewer
As per Clause 7(5) of the Peer Review Guidelines, 2022, the Reviewer may
seek further/ additional clarification in Form 6 from the Practice Unit on the
information furnished/ not furnished by the Practice Unit in the Questionnaire.
The Practice Unit shall provide this additional information to the Reviewer
within one working day.
Thus, in case if after going through the responses submitted by the Practice
Unit to the Reviewer, the Reviewer desires to seek any additional information
from the Practice Unit. He should seek the same in Form 6. Only after receipt
of satisfactory information from the PU, the date of visit will be informed by
the reviewer to the PU.
After going through the questionnaire, if the Reviewer finds that some
additional information is required or the information provided is incomplete or
not clear he may ask for the same in this Form.
Form 6
FORM 6
Format for seeking additional information from the
Practice Unit by the Reviewer
To,
Name of Partner of PU:
This is regarding the Peer Review of the Firm ………………………. for the
period ……………………….
I would like to inform you that the responses submitted by you to the
following clauses of the Questionnaire are incomplete/ not clear. Accordingly,
you are requested to provide clarifications on the following points:
S. No. Reference no. of the Further Information Reason for asking
Questionnaire required the information
[Not clear/
incomplete/ left
blank etc.]
On receipt of the above information by ………. [ date by which information is

required], I will intimate you the date of my visit to your office.
Thanking you,
Signature :
Name :________________
Date: __________________
123
Form 7
Joint Application to be made by PU and
RE for seeking additional time for
completion of Peer Review Process
As per Clause 11(1) of the Peer Review Guidelines 2022 in case of delay in
the completion of Peer Review process beyond the timeframe prescribed by
the Board i.e. if the Reviewer is not able to complete the Peer Review
process and submit report to the Board within 20 days of initiation of Peer
Review process , or the delay is on the part of Practice Unit, the Practice Unit
and the Reviewer including the Branch Peer Reviewer, if any, shall submit a
joint application to the Board in Form 7 seeking extension of time giving
reasons for the delay in the process and submission of report to the Peer
Review Secretariat. Examples of such delay may be:
• Submission of Declaration of confidentiality by the Reviewer to the
Practice Unit beyond the prescribed time limit.
• Health issues /family issues faced by either the Practice Unit or the
Reviewer.
• Delay in providing information relating to questionnaire by the Practice
Unit to the Reviewer.
The above list is illustrative and there can be any other reason which the
Practice Unit or the reviewer may specify. Delay can be by the Practice Unit
which has applied for Peer Review in Form 1 to the Board or by the Peer
Reviewer, hence the said application has to be jointly signed and sent to the
Board. In case, if the Peer Review process cannot be completed and report
submitted within the extended time also, an application in the said form may
again be submitted to the Board seeking further extension.
The Form has to be jointly signed by the Partner of the Practice Unit as well
as by the Peer Reviewer.
Form 7
FORM 7
Joint intimation to be made by PU and RE for extension of time for
completion of Peer Review process
[As per Clause 11 of the Peer Review Guidelines 2022]
To, Dated:
The Secretary,
Peer Review Board
Sub: Letter for seeking additional time for completion of Peer Review
Process
Dear Sir,
Our Firm …………..., FRN …………... Applied for Peer Review vide
Application No. …………... on …………...
The Peer Reviewer was appointed by the Board on …….... However, the
Peer Review process has been initiated but is yet to be completed due to the
following reason:
1. ....
2. …..
3. ….
As the process is not yet completed we request the Board to kindly grant us
……………... more days for completion of Peer Review and submit the report
to the Board.
We assure that the Peer Review will be completed by …………... And the
report will be submitted to the Board by …………...
Thanking You,
Yours faithfully
Signature Signature
Name of Partner of PU Name of Peer Reviewer
[Membership No] [Membership No.]
125
Form 8
Letter Seeking Extension to the Validity
of Peer Review Certificate
As per Clause 15 of the Peer Review Guidelines 2022, the Peer Review
Certificate issued to a Practice Unit shall be valid for a period of three years
or such other period as may be decided by the Board. It is the responsibility
of the Practice Unit to complete its Peer Review and ensure submission of all
necessary documents by the reviewer within sufficient time before the date of
expiry of the previous certificate. The validity of the Certificate shall, under no
circumstances be extended by the Board.
However as per Clause 15(4) of the Peer Review Guidelines, the Council
may for such reasons as may be prescribed by it extend the validity of
existing Peer Review certificate granted to a Practice Unit. The Practice Unit
shall make an Application in Form 8 requesting for extension of validity.
Hence Form 8 has to be submitted by the Practice Unit to the Board for
seeking extension of the existing Peer Review Certificate issued by the
Board. It may be noted that as per decision of the Council, such extension
shall not be given beyond six months from the date of expiry of last issued
Certificate. Further such extension may be granted by the Board only if any
partner of the Practice Unit is seriously ill or he has been affected by a
pandemic announced by the Government subject to submission of a medical
certificate issued by the Doctor.
Form 8
FORM 8
[To be submitted by the Practice Unit to the Board for seeking
extension to the validity of Peer Review Certificate]
To, Dated:
The Secretary,
Peer Review Board
Sub: Letter for seeking extension to the validity of Peer Review
Certificate
Dear Sir,
Our Firm …………...…………..., FRN- …………...…………... Applied for Peer
Review vide Application No. …………...…………... on …………...…………...
The Peer Reviewer was appointed by the Board on …………... However, the
Peer Review process has initiated but is yet to be completed due to the
following reason:
A pandemic announced by the Central Government
Serious illness of any partner/ member
*I am attaching the medical certificate issued by the Doctor.
The Last issued Peer Review Certificate of our Firm was valid till …………....
We request you to kindly extend the validity of the Certificate from …………...
To …………...
Thanking You,
Yours faithfully
Signature
Name of Partner of the Practice Unit
…………...
[Membership No]
[Note: As decided by the Council, extension cannot be granted beyond 6
months from the expiry of last issued certificate]
Enclosure: Medical Certificate
127
Form 9
Letter for submission of report by the
Peer Reviewer to the Peer Review Board
As per clause 9 of the Peer Review Guidelines 2022, after completing the on-
site review, the Reviewer has to submit the Peer Review Report to the Board
along with Form 9. Accordingly, Form 9 is a cover letter which has to
accompany the Peer Review report. In the said Form the reviewer has also to
confirm that he has received the Peer Review fee from the Practice Unit. The
said Form has to be signed by the Practice Unit also confirming the receipt of
declaration of confidentiality from the reviewer in Form 2 as well as the fact
of having received a copy of the report submitted by the Peer Reviewer to
the Board. Accordingly, the said form has to be signed by both by the partner
of the Practice Unit as well as the Reviewer.
Form 9
FORM 9
Letter for submission of report by the Peer Reviewer to the
Peer Review Board
To, Dated:
The Secretary,
Peer Review Board
Sub: Peer Review Report of …………….……………..... [Name of Firm],

FRN ……………………
Dear Sir,
I have carried out the Peer Review of ...................... [Name of firm],
FRN........... in terms of Peer Review Guidelines issued by the Council of the
Institute of Chartered Accountants of India.
The Peer Review process has been completed and I am submitting the Peer
Review Report along with the following:
1. Annexure I
2. Annexure II
3. Annexure III (AQMM, if applicable)
4. List of Samples selected alongwith basis of selection and sample
confirmation (as per Board’s criteria)
5. Preliminary Report along with Practice Unit submission and my
verification on the same
6. Questionnaire copy as received from the Practice Unit.
I also confirm to have received the Peer Review fees from the Practice Unit
for the above review conducted by me.
Regards,
Signature :
Name :____________________
Membership No.: ____________
129
[To be filled by the Practice Unit]

I/ We confirm the receipt of Peer Review report from the Peer Reviewer as
mentioned above and confirm that the Reviewer had submitted the
Declaration of Confidentiality as prescribed by the Board in Form 2 to us on
.........
Regards
Signature
Name of partner of the Practice Unit .........
Membership No .........
130
Form 10
Notice to be given to the Practice Unit
by the Board in case of revocation of
Peer Review Certificate
As per Clause 22 of the Peer Review Guidelines 2022, the Peer Review
Certificate issued to a Practice Unit may be revoked by the Board for reasons
mentioned in the said clause. The Board has to serve a show cause notice to
the Practice Unit in Form 10.
FORM 10
Notice to be given to the Practice Unit by the Board in case of
revocation of Peer Review Certificate
To, Dated:
CA....
Partner: M/s.....
FRN: .......
Address. ……............................................
……...........................................................
Sub: Revocation of Peer Review Certificate No. ……….…... issued to
………..…. [Name of Firm], FRN...........
Dear Sir,
This is in reference to the Peer Review Certificate No ......... issued to M/s
......... [Name and City of the PU], FRN: .........
The Board has observed that:
......................................................
......................................................
The Board desires to know whether the above observations are true and
correct. Please send your response within 7 days of receipt of this
communication.
If no information or response is received in this matter within 7 days of
receipt of this communication, then it will be considered that the above-
mentioned facts are true and correct.
Thereafter, the Board will take further action warranted in the facts and
circumstances of the case and as per Clause 22 of the Peer Review
Guidelines 2022.
With Regards
Thanking you
Yours Faithfully
Signatures
[Name of Secretary, Peer Review Board]
132

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HANDBOOK ON PEER REVIEW

Peer Review Board

The objective of the Handbook on Peer Review Forms is to provide guidance to

My sincere appreciation for the efforts of CA. Chandrashekhar Vasant Chitale,

New Delhi CA. (Dr.) Debashis Mitra

The Handbook on Peer Review Forms is intended to provide information to

I wish to place my sincere thanks to CA. (Dr.) Debashis Mitra, President,

New Delhi CA Chandrashekhar Vasant Chitale

Form 1 Application cum Questionnaire to be submitted by the

The Secretary, Peer Review Board,

(iii) As a special case Review initiated by the Board:

(iv) New Unit:

(v) As per decision of the Board:

S. Type of Assurance Major type of Client

(ii) From outside City

(iii) Either option (i) or (ii)

(iv) Preferred City in case of option (ii) ______________________

(i) CA ……….., M.No. [………] , partner of my firm is /was a

• I understand that the Peer Review Certificate, issued on the

Membership No. of the Signatory

1. Name of the Practice Unit:

2. Peer Review of HO Branch

Limited Liability Partnership Practicing in individual name

6. Date of establishment of the PU: d d m m y y y y

7. Firm Registration Number:

like Statutory audit, tax audit, Taxation etc. headed by different

Name of Membership Association Any Post Professional Predominant Details of

12. Particulars of Chartered Accountants / Employed / Paid Assistant or

Name (s) Membership no. Association with Experience (in

13. Details of Other Employees as on <______>:(last date of block period

S.No Member in No. of staff Membership Address Whether

Financial Year Head Office Branch -- Branch -- Branch --

18. Whether PU has ever undertaken self-evaluation as per ‘Digital

21. Whether any client obtained through the process of

A Any Bank or Insurance Company

E Asset Management Companies or Mutual Funds.

F Entities preparing the financial statements as per Ind AS.

*Type of engagement (1) Central Statutory Audit (CSA), (2) Statutory

Note: Type of assurance service engagements include Central Statutory

S.No. Policies and Procedures Remarks/Yes/No/Na

7 (ii) Whether refresher sessions are taken

S.No. Policies and Procedures Remarks/Yes/No/Na

S.No. Policies and Procedures Remarks/Yes/No/Na

S.No. Policies and Procedures Remarks/Yes/No/Na

S.No. Policies and Procedures Remarks/Yes/No/Na

15. Have any Government Bodies/ Authorities

S.No. Policies and Procedures Remarks/Yes/No/Na

S.No. Policies and Procedures Remarks/Yes/No/Na

7 Did the PU face any issues relating to

S.No. Policies and Procedures Remarks/Yes/No/Na

S.No. Policies and Procedures Remarks/Yes/No/Na

S.No. Policies and Procedures Remarks/Yes/No/Na

S.No. Policies and Procedures REMARKS/YES/NO/NA

S.No. Policies and Procedures REMARKS/YES/NO/NA

S.No. Policies and Procedures REMARKS/YES/NO/NA

S.No. Policies and Procedures REMARKS/YES/NO/NA

S.No. Policies and Procedures Remarks/Yes/No/Na

Competency Basis Score Basis Max Scores

Competency Basis Score Basis Max Scores