Listed cos to be audited only by those peer-reviewed by ICAI
April, 10th 2009
Accounting regulator ICAI on Thursday said all listed companies would be audited by only those who have been certified by the Peer Review Board of the institute.
"The council had accepted the recommendation of Sebi that audit of listed companies shall be carried out by auditors who have undergone Peer Review Process and have been issued Peer Review Certificate by the Board.
"The decision is effective for accounting periods commencing on or after April 1, 2009," the Institute of Chartered Accountants of India (ICAI) said in a statement.
Peer review is the process of evaluation of performance by other chartered accountants in order to maintain or enhance the quality of the work or performance. It helps in obtaining an unbiased evaluation.
The ICAI said the Board is in the process of covering those audit firms that have not yet been selected for the Peer Review Process.
After the multi-crore rupee Satyam scam came to light, Sebi had announced a peer review of the Sensex and Nifty companies to preclude similar frauds.