Module: | SEBI LODR & Corporate Governance Frameworks
Q17: Consider the following statements regarding Phase IV of the Peer Review Mandate implemented by the Institute of Chartered Accountants of India (ICAI):
1. Phase IV mandates that practice units proposing to undertake audits of branches of Public Sector Banks must hold a valid Peer Review Certificate.
2. The mandate also applies to practice units rendering attestation services that have three or more partners.
3. The implementation of Phase IV was officially enforced without any extension starting strictly from January 1, 2026.
Which of the above statements is/are incorrect?
2. The mandate also applies to practice units rendering attestation services that have three or more partners.
3. The implementation of Phase IV was officially enforced without any extension starting strictly from January 1, 2026.
Which of the above statements is/are incorrect?
✅ Correct Answer: C
🎯 Quick Answer:
C. Only 3 is incorrect.Structural Breakdown: Statement 1 is correct.
Statement 2 is correct.
Statement 3 is incorrect; the ICAI deferred Phase IV by one year to December 31, 2026.
Historical/Related Context: The ICAI rolls out peer review in phases to gradually bring firms under quality assurance.
Causal Reasoning: The deferment provides mid-sized firms time to prepare their internal systems for compliance.