All about the Peer Review (PR) Process

All about the Peer Review (PR) Process

1. Preliminary Preparation :

• Download the complete UDIN list of all attest/signing assignments done during the last three financial years (01.04.2022 to 31.03.2025). Fill the UDIN details carefully in the Annexure format of Form 1. Complete Form 1 thoroughly : Parts A, B, and C, as applicable. Select top 10 samples from the UDIN list as per the sample selection criteria prescribed in the Peer Review Board (PRB) Guidelines. Keep all audit and assurance files corresponding to the selected samples ready for verification.

2. Initiating the Peer Review Process :

• Send a request email to PRB to initiate the Peer Review process. (Form 1 is not required at this stage.) The next day, PRB will respond requesting submission of Form 1. Email Form 1 along with the UDIN Annexure to PRB as per the instructions received.

3. Appointment of Peer Reviewer :

• After receipt of Form 1, PRB will provide a list of three empanelled Peer Reviewers. Select one Peer Reviewer from the list and communicate your choice to PRB via email. Contact the selected Peer Reviewer and schedule the visit to your firm.

4. During the Review :

• Obtain a Confidentiality Declaration from the Peer Reviewer in Form 2 before the commencement of the review. Provide the Sample List to the Peer Reviewer in Form 5. The Peer Reviewer will conduct the review and prepare the Peer Review Report in Form 9.

5. Completion and Certification :

• The Peer Reviewer will submit the report to PRB. The PRB Committee will evaluate the report and, upon approval, issue the Peer Review (PU) Certificate to your firm.

Care to be Taken in filling of Point 5 of Form 1 (Option for Appointment of Peer Reviewer)

While filling Point 5 of Form 1, special attention must be given to the selection of the option for appointment of the Peer Reviewer, as this determines the pool from which PRB will propose names. Available Options in Point 5

(i) Same City
(ii) From Outside City
(iii) Either Option (i) or (ii)
(iv) Preferred City (in case of Option ii)

Guidelines for Correct Selection of Peer Reviewer

1. If ‘Same City’ is selected: PRB will send three Peer Reviewer names from the same city as the firm’s Head Office (HO), or nearest available on the Peer Review Panel. & Suitable for firms preferring local reviewers for ease of logistics and scheduling.
2. If ‘From Outside City’ is selected: PRB may send names of reviewers from any city across India, except the city where the firm’s Head Office is located. For example : If the firm’s HO is in Kanpur, you may choose this option and specify a preferred city (e.g., Delhi/Noida/Ghaziabad) under point (iv).This is useful when firms prefer a reviewer from a specific metro or neutral location.

iii. If ‘Either Option (i) or (ii)’ is selected:

• PU must still mention a preferred city under point (iv). PRB will then issue three names — which could be a combination of reviewers from the same city, nearby cities, or the preferred city mentioned.
• This option offers flexibility and is suitable if the firm has no strict city preference. PU Ensure that the “Preferred City” field (point iv) is always filled, regardless of which option is selected. Leaving it blank may delay the reviewer nomination process by PRB.

Important Points to Note – Annexure A of Form 1 (Peer Review)

When preparing Annexure A of Form 1, the following points must be carefully observed to ensure accuracy and compliance with PRB requirements:

Period to be Covered – Based on Signing Dates, Not UDIN Dates :

The Peer Review period of three financial years (e.g., 01.04.2022 to 31.03.2025) should be determined based on the date of signing of audit/assurance reports : not the UDIN generation date. Illustration: If the firm signed a client’s financials on 31.03.2022, but the UDIN was generated on 10.04.2022, the signing pertains to FY 2021–22, and therefore should not be included in the Annexure A list for the review period FY 2022–23 to FY 2024–25. The cut-off must always align with the signing date, since the signing of reports determines the audit activity period.

Mention Only One Relevant Financial Figure (Turnover / Borrowings / Net Worth) :

In Annexure A, only one relevant figure : Turnover, Borrowings, or Net Worth : should be filled in, as per the nature of the assurance engagement. Do not fill all three figures simultaneously. Examples:

• • Statutory Audit of Financial Statements : Mention Turnover.
  • Certificate of Net Worth : Mention Net Worth.
  • Certification of Borrowing/Utilisation : Mention Borrowings.
• The selection should be logical and engagement-specific, ensuring that the number presented is meaningful for the purpose of the audit/assurance assignment.