By CA Surekha S Ahuja
(Aligned with ICAI Guidelines and Best Practices)
Peer Review is a collegial, system-focused quality assurance exercise, designed to enhance the robustness of a Practice Unit’s (PU) processes, documentation, and ethical compliance. It is not an audit, investigation, or disciplinary exercise, but a structured dialogue aimed at improving professional systems, while preserving client confidentiality and organizational dignity.
Role of the Peer Reviewer
The Peer Reviewer, typically a senior professional, is expected to:
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Conduct the review independently, objectively, and courteously.
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Evaluate the PU’s systems, procedures, and documentation frameworks, focusing on compliance with Standards on Auditing/Assurance, SQC 1 / SA 220, and ICAI Code of Ethics.
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Select assurance engagements on a sample basis, strictly limited to the review period.
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Maintain absolute confidentiality; observations are constructive and system-oriented, not punitive.
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Retain only peer review questionnaires, checklists, professional notes, and non-client-specific firm manuals shared with consent.
Professional boundaries: The reviewer shall not copy, photograph, scan, remove, or email client files, nor use them as reviewer working papers. Full or unrestricted system/cloud access is not required.
Responsibilities of the Practice Unit
The Practice Unit ensures a structured, compliant, and cooperative environment:
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Pre-review preparation: Submit completed Peer Review Questionnaire, assurance client list with fees, and a concise note on firm policies—independence, supervision, engagement quality review, acceptance, and documentation.
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Controlled access: Client and engagement files are available only on-site or via controlled on-screen inspection, under supervision.
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Confidentiality protection: Sensitive client information is masked as appropriate.
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Coordination: A designated partner or senior supervises all interactions with the reviewer.
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Constructive engagement: Facilitate factual clarifications and explanations, avoiding unsolicited interpretations or informal sharing.
Internal Staff SOP at the Practice Unit
Staff play a critical supporting role in maintaining professionalism and ensuring smooth review execution:
Do’s:
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Familiarize themselves with review protocols and file organization.
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Respond factually and courteously to reviewer queries via the designated partner/senior.
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Ensure engagement files and firm records are complete, indexed, and ready for inspection.
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Maintain strict client confidentiality at all times.
Don’ts:
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Do not copy, photograph, scan, or transmit client records.
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Do not provide passwords, system or cloud access.
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Do not answer reviewer queries independently or beyond scope.
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Do not remove or alter engagement files during or after the review.
Post-review obligations: Re-secure all records, implement follow-up instructions, and continue to maintain confidentiality of observed information.
Guiding Principles
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Peer Review is a professional dialogue, not a fault-finding mission.
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Controlled access, system-based assessment, and constructive feedback define an effective review.
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Respect, professionalism, and confidentiality are the pillars that ensure trust, compliance, and continuous improvement.
Internal Caption:
“Professional restraint, system readiness, and cooperative engagement form the foundation of an effective Peer Review.”
