ICAI Mandates Peer Reviews for Public Sector Bank Audits

The Institute of Chartered Accountants of India (ICAI) will require peer reviews for all component auditors conducting public sector bank (PSB) branch audits beginning in January 2027. This requirement extends the existing peer review rules, which currently apply to principal auditors of PSBs, to component auditors. Additionally, ICAI plans to reduce the time needed to resolve disciplinary matters involving chartered accountants from two to three years to 365 days, according to a report.

The mandate increases regulatory oversight of PSB audits by requiring component auditors to undergo peer review. Peer review is already mandatory for certain large entities, and this expansion affects the operational requirements of auditing firms. The change also signals a regulatory effort to streamline professional disciplinary processes within the accounting industry.