ICAI Peer Review 2026: The Complete Guide for CA Firms in India
Everything Indian Chartered Accountants need to know about ICAI Peer Review under the Peer Review Guidelines 2022 — applicability, forms, the 20-day timeline, fees, certificate validity, and how to prepare.
ICAI Peer Review is one of the most important quality-assurance exercises a Chartered Accountant firm in India will go through. Since the Peer Review Guidelines 2022 (effective 1 October 2022, notified under section 15(2)(fa) of the CA Act), the framework has been significantly modernised — new forms, a strict 20-working-day timeline, the AQMM (Audit Quality Maturity Model) for listed-entity auditors, and tighter cooling-off rules for reviewers.
This guide pulls the entire process into one place so you know exactly what to expect — whether you're a Practice Unit (PU) about to file your first Form 1, or a CA considering empanelment as a Peer Reviewer.
What is ICAI Peer Review?
Peer Review is a structured quality-control inspection of a Chartered Accountant firm's assurance practice by another empanelled CA. It's NOT a disciplinary process. The Peer Review Board (PRB) of ICAI runs the programme. The goal:
- Ensure CA firms follow Standards on Auditing (SAs), SQC 1, and ICAI ethics
- Improve audit quality across the profession
- Build market confidence in Indian assurance reports
A successful Peer Review results in a Peer Review Certificate — valid for 3 years (18 months for New Units or 100%-population reviews). Without this certificate, a firm cannot audit listed entities, banks, insurance companies, or several other regulated categories.
Who must undergo Peer Review?
Per Clause 5 of the Peer Review Guidelines 2022, the four trigger sources are:
1. Voluntary (Cl. 5(ii)) — A firm applies on its own initiative. 2. Mandatory (Cl. 5(i)) — Firms auditing entities in 11 specified categories (A through K), including listed companies, banks, insurance cos, NBFCs > ₹100 cr, central/state PSUs > ₹250 cr, mutual fund AMCs, public-fund raisers > ₹50 cr, etc. 3. Special Case (Cl. 5(iii)) — Board initiates a review based on information from the ICAI Secretary, Disciplinary Directorate, or a regulator (SEBI, RBI, IRDAI, C&AG, NFRA). 4. New Unit (Cl. 5(iv) + Cl. 8) — Firms less than 12 months old OR firms older than 12 months that have not rendered any assurance services yet. New Units get a short 7-WD review cycle and 18-month rolling certificate.
If you fall into the mandatory category, you must complete Peer Review before your previous certificate expires (or before commencing such audits). Filing Form 1 starts the clock.
The 10 Peer Review Forms
| Form | Purpose | Filed by |
|---|---|---|
| Form 1 | Application + Questionnaire (Parts A, B, C with AQMM) | PU → PRB |
| Form 2 | Reviewer's Acceptance + Confidentiality declaration | Reviewer → PU |
| Form 3 | Application for Peer Reviewer empanelment | CA member → PRB |
| Form 4 | Board / Secretariat conflict declaration | Board + staff |
| Form 5 | Notice of Visit + Sample list | Reviewer → PU |
| Form 6 | Seeking additional info from PU | Reviewer → PU |
| Form 7 | Joint extension request | PU + Reviewer → PRB |
| Form 8 | Certificate validity extension (Council only) | PU → Council |
| Form 9 | Submission of Final Report | Reviewer → PRB |
| Form 10 | Notice of Revocation (show-cause) | PRB Secretary → PU |
Our online tools cover Forms 1, 2, 3, 5, 6, 7, and 9 — fill, save, and print on letterhead, free to start.
The 20-working-day timeline (Annexure II)
For a regular PU (non-New-Unit), the entire cycle from PRB receipt of Form 1 to submission of Form 9 must fit within 20 working days:
- Day 1 — PRB receives Form 1
- Day 4 — PRB sends panel of 3 reviewers + fee notification (within 3 WD)
- Day 5 — PU picks reviewer (1 WD)
- Day 7 — Reviewer files Form 2 + PU forwards Form 1 (within 2 WD)
- Day 9 — Reviewer issues Form 5 (within 2 WD of receiving Form 1, ≥2 WD notice to PU)
- Day 10 — Form 6 if needed; PU responds within 1 WD
- Day 11-16 — On-site review (max 6 WD)
- Day 17 — Preliminary Report issued (1 WD after review)
- Day 19 — PU's written representation (2 WD)
- Day 20 — Form 9 + attachments submitted
Exceed 20 WD? You must file Form 7 (joint extension) with the PRB before the original Day-20 deadline elapses. Failing that, you risk delay being unconditional — and downstream consequences.
Sample selection — Annexure B + 10 criteria
Reviewers don't audit every client file. They sample based on the PU's average annual gross receipts from assurance work:
| Avg receipts (₹ Cr) | Min samples |
|---|---|
| < 5 | 10 |
| 5 to < 10 | 15 |
| 10 to < 20 | 20 |
| 20 to < 30 | 25 |
| 30 to < 50 | 30 |
| ≥ 50 | 50 |
If the population is less than the minimum sample, the reviewer must take 100% of engagements AND intimate the Board — and the certificate validity drops from 3 years to 18 months.
The 10 selection criteria (8 active for regular PUs, 10 for listed-entity reviewers) ensure samples cover concentration risk (Cl. 17), every partner, every FY, every engagement type, and any clients with FRRB or regulator advisories.
AQMM v2.0 — what's new for listed-entity auditors
Since 1 April 2023, every PU auditing a listed entity (excluding branch-only audits of banks/insurance cos) must complete Form 1 Part C — Audit Quality Maturity Model (AQMM) as a self-evaluation. The reviewer independently re-scores it as Annexure III to the Final Report.
Three sections (each contributing to the Overall Level):
- Section 1 — Practice Management & Operations (max 280)
- Section 2 — Human Resource Management (max 240)
- Section 3 — Practice Management — Strategic / Functional (max 80)
The Overall AQMM Level = MIN of the three section levels. Negative-marking items include QRB adverse observations (-5), CAG advisory not to allot work (-5), government blacklisting (-10), and professional misconduct findings (-5).
Certificate validity
| Case | Validity |
|---|---|
| Standard 3-year period reviewed | 3 years from PRB report receipt |
| Population < min sample (100% taken) | 18 months |
| New Unit (provisional) | 18 months rolling until full 3-yr period reviewed |
| Form 8 extension (Council only) | + max 6 months from original expiry |
A certificate received before the previous one expires has validity that starts the day AFTER previous expiry — protecting continuity.
Preparing for your Peer Review
If you're a PU, our Form 1 Filing Tool walks you through Parts A, B (SQC 1 questionnaire), and C (AQMM) step-by-step. If you're considering becoming a Peer Reviewer, run our Form 3 Eligibility Wizard — it checks all the Cl. 26-27 criteria and tells you what's missing.
Once your engagement is underway, the Peer Reviewer Tool gives you a working-day-aware 20-day timeline, automatic deadline computation, holiday-aware date math, and one place to log every milestone date.
Bottom line
Peer Review under the 2022 Guidelines isn't just a checkbox. It's a structured, time-bound, quality-assurance discipline that protects the credibility of Indian assurance reports — and your firm's ability to keep auditing key categories.
Start early, file Form 1 well before any deadline, pick a reviewer who's done a few reviews in your industry, and don't underestimate the on-site visit.
Need help? WhatsApp CA Jatin Tagra at +91 99531 40464.
Try the tools, free
File Form 1, check Form 3 eligibility, or run the 20-day Peer Review tracker — all online, no install.