Practice Unit Checklist Before Filing Form 1 — Avoid Common Rejections

The biggest reason Peer Review applications get delayed isn't the on-site visit — it's the Form 1 filing stage. Firms file with incomplete data, miss a Cl. 17 disclosure, or misclassify engagements, and the PRB Secretariat sends back clarification queries that eat 1-2 weeks.

This pre-flight checklist catches the 10 most common issues BEFORE you click submit.

① Firm-master data matches ICAI portal

Open the ICAI Member Search portal and Firm Search portal. Cross-check that the data you're about to enter in Form 1 matches exactly:

• Firm name (spaces, punctuation, "& Co." vs "& Associates")
• FRN
• Date of constitution
• Current partner list (current MRNs)
• Branch addresses (PIN codes especially — typos here trigger re-verification)
• LLP conversion details (if applicable)

Why it matters: Mismatches automatically generate Secretariat queries. The application is held in pending status until reconciled.

② Partner roster covers the full review period

If your review period is FY 2023-24 to FY 2025-26 (3 years), Form 1 must declare every partner who was active during ANY part of those years — not just the current ones.

Include:

• Partners who retired or left during the period (with dates)
• Partners admitted during the period (with admission dates)
• Designated partners (for LLPs)

③ Concentration disclosure (Cl. 17) is explicit

If any client accounts for ≥ 15% of your assurance gross receipts in any of the review FYs, declare it. Even if no client crosses 15%, explicitly state that in the relevant field — don't leave it blank.

Why: A blank concentration field is interpreted as "missing data" not "no concentration".

④ Engagement categorisation (A-K) is complete and accurate

Form 1 Part A4 asks you to classify all assurance engagements into 11 categories (A through K). Common mistakes:

• Double-counting an engagement that fits two categories
• Putting a listed-bank audit under "A. Bank" when it should be under "D. Listed Entity" (more stringent category wins)
• Missing Internal Audits or Tax Audits that count under "K. Any other assurance services"

Tip: Build a spreadsheet of every engagement first, classify, then transcribe into Form 1.

⑤ Articled-assistant register is reconcilable

Form 1 captures the article-clerk count + roster. The PRB occasionally cross-checks against your ICAI Articled-Clerk register on file. Make sure:

• Total active clerks matches
• Joiner-leaver dates within the review period are captured
• Any disciplinary or termination is disclosed honestly

⑥ CPE compliance certificates ready

For each partner, you must report:

• Structured CPE hours (last 3 calendar years)
• Unstructured CPE hours
• Total per the ICAI requirement

Partners short on CPE should have a documented remediation plan. Pretending to meet CPE when you haven't is a flag the reviewer will spot during the on-site.

⑦ FRRB / Regulator advisories — full disclosure

Cl. 14(ii) of the Guidelines mandates disclosure of any FRRB observations received and Cl. 14(iii) covers Regulator advisories (SEBI, RBI, IRDAI, C&AG, NFRA). Even if the matter is closed, declare it.

Hiding a known advisory is a Cl. 22 revocation trigger if discovered later.

⑧ Pending disciplinary matters declared

Any pending matter under the CA Act — for the firm or any partner — must be disclosed in Form 1 Part B(II). The Disciplinary Directorate can confirm pending status directly with the PRB, so don't try to hide.

⑨ SQC 1 questionnaire fully answered

Part B(I) has 36 SQC 1 items split across 6 elements. Every item must have a Yes / No / N/A answer. Blanks read as "No".

Honest "No" beats dishonest "Yes" — the reviewer's on-site testing will catch overclaims.

If you have genuine "No" responses, add a remediation plan in the free-text comments. Reviewers appreciate transparency + a path forward.

⑩ AQMM v2.0 Part C — if listed-entity audits

If you audit ANY listed entity (excluding branch-only audits of banks/insurance cos), Part C (AQMM) is mandatory since 1 April 2023.

Complete it honestly. The reviewer will independently re-score every item and document differences in Annexure III. Overstated self-scores damage your standing.

Bonus: documents to keep ready (for upload)

Have these scanned PDFs available before starting Form 1:

1. Firm registration certificate 2. Partnership deed / LLP agreement (latest version) 3. Current partners' ICAI member cards 4. CPE certificates (last 3 yrs, per partner) 5. Articled-Clerks register summary 6. Latest 3 FYs' fee details by engagement type 7. FRRB / Regulator advisories (if any) — full copies 8. Disciplinary status confirmation (DC) — even if "Nil", get a printed Nil declaration

Use the online tool to avoid mistakes

Our Form 1 Filing Tool bakes most of these checks into the form itself:

• Pre-fills firm data from ICAI portal (where available)
• Validates partner-roster dates against review period
• Flags missing Cl. 17 disclosure with an inline warning
• Prevents engagement double-counting via category dropdown
• AQMM Part C with live scoring + level computation
• Pre-flight checklist pop-up before submission

After Form 1 — what to expect

If your Form 1 is clean:

• PRB acknowledges receipt within 2 WD
• Sends panel of 3 reviewers within 3 WD (Day 4)
• You pick one within 1 WD (Day 5)
• Reviewer files Form 2 within 2 WD (Day 7)
• The 20-day clock is now active

If your Form 1 has issues, the PRB Secretariat emails clarifications. Each clarification round adds 3-5 working days to the cycle.

Bottom line

The PRB doesn't reject Form 1 for minor issues — they ask for clarifications. But every clarification round delays your certificate, eats your reviewer's bandwidth, and creates audit-trail noise. Spend 2-3 hours on this checklist BEFORE submitting and you'll save 2-3 weeks downstream.

Need a quick review of your draft Form 1? WhatsApp CA Jatin Tagra at +91 99531 40464 — happy to flag pre-submission issues.