The Institute of Chartered Accountants of India (ICAI) has postponed the commencement of phase four of its peer review mandate by one year.  

The revised timeline will now be enforced from 31 December 2026, instead of the previously planned date of 1 January 2026. 

This change was outlined in a notice issued by the Peer Review Board on 31 December 2025. 

Under phase four, two sets of accounting companies will be required to hold a valid Peer Review Certificate before undertaking certain audit assignments.  

The first group includes practices that intend to audit branches of public sector banks. These operators must secure certification prior to starting or continuing such audits. 

The second group affected by the mandate consists of companies with three or more partners that provide attestation services.  

These operators are also required to obtain peer review certification before accepting statutory audit work.  

Both groups were initially expected to comply with these requirements at the start of 2026. 

As reported by the Financial Express, the delay provides additional time for chartered accountancy companies impacted by the mandate to align their practices with the updated standards. 

The peer review process is intended to ensure that accounting professionals adhere to technical, professional and ethical guidelines, as well as regulatory requirements, when delivering assurance services.  

Companies are also expected to maintain appropriate systems and documentation as evidence of service quality. 

The ICAI has been expanding its peer review requirements in stages, gradually bringing more operators under mandatory review.  

For those auditing public sector bank branches, this extension allows continued preparation without immediate risk of non-compliance due to certification status, stated the news publication. 

Similarly, operators with three or more partners offering attestation services now have extra time to meet the necessary conditions before taking on statutory audit assignments.