Preliminary Report of Reviewer

• At the end of an on-site review, the reviewer shall, before making his report to the Board, communicate a preliminary report to the practice unit. The reviewer shall report on the areas where systems and procedures had been found to be deficient or where non-compliance with reference to any other matter has been noticed by him.
  
  

• The reviewer shall not name any individual in his reports.
  
  

• The practice unit shall have 21 days beginning the day after the day the preliminary report is received by the practice unit from the reviewer to make any submissions or representations, in writing to the reviewer, concerning the preliminary report.
  
  

Interim Report of Reviewer

1. If the reviewer is satisfied with the reply received from the practice unit, he shall submit an appropriate Report to the Board. In case the reviewer is not satisfied with the reply of the practice unit, the reviewer shall accordingly submit his Interim Report to the Board.
   
   

2. In pursuance of the provisions contained in the above clause or on receipt of a request from the practice unit, the Board may instruct the reviewer to again carry out the review after six months to verify that systems and procedures have been streamlined and accordingly, on being satisfied, submit a report to the Board.
   
   

3. On receiving a report from a reviewer in terms of this Statement, the Board, having regard to the Report and any submissions or representations attached to it, may:
   
   c-a. make recommendations to the practice unit concerned regarding the application by it of Technical Standards;
   
   c-b. if it is of the opinion that
   
   

1. In case the review is related to a firm, any one or more or all of the partners in the firm may have failed to observe, maintain or apply, as the case may be, Technical Standards;
   
   

2. In case the review is related to a member practicing on his own account, the member may have failed to observe, maintain or apply, as the case may be, Technical Standards;
   
   Then;
   
   

3. Issue instructions to the reviewer to carry out, within such period as may be specified in the instructions (which period shall not commence earlier than six months after the date on which the instruction is issued), a further peer review as regards the practice unit to which the report relates; and
   
   

4. Specify in the instruction, the matters as regards which the review is to be carried out;
   
   

The Board will make recommendations to the practice unit where:

d-a. It considers that the practice unit has satisfied all key control objectives which the Board has determined and/or prescribed in respect of maintenance of/ adherence to Technical Standards but where further improvements could be made to internal quality control systems; and

d-b. It considers that the practice unit has satisfied the major key control objectives but some weaknesses exist in others. The practice unit is expected to consider the recommendations for rectifying the weaknesses thus identified and informed by the Board and take all necessary actions to ensure that all key control objectives are achieved. A follow up will be done after 12 months from the date of the submission of the report to enquire about the progress of the implementation of the recommendations.

A follow up review will be required where the practice unit has not satisfied the Board that all the key control objectives have been maintained and where, in the view of the Board the deficiencies are likely to materially affect the overall quality of an attestation services engagement of the practice unit. In such cases the Board will also make recommendations, which it expects the practice unit to implement in order to ensure the maintenance of Technical Standards. The implementation of these recommendations will be examined during the follow up review.

In case the reviewer is not satisfied even at the subsequent review, he shall submit his Report to the Board incorporating his reasons for dissatisfaction.

(iii) Final Report of Reviewer

1. The reviewer will prepare a final Report to the Board (the Reviewer's Report), incorporating the findings as discussed with the practice unit. The final report will be examined/inspected by the Board in terms of the degree of compliance with the Technical Standards by the reviewed practice unit. The model forms of such final Reports shall be communicated to the reviewer by the Board.
   
   

2. The Board shall consider the reviewer's final report and the practice unit's submissions. Thereafter, the Board shall issue recommendations, if considered appropriate, to the practice unit and instruct the Reviewer to perform any follow-up action. The Board may then issue Peer Review Certificate to the practice unit provided that the Certificate should be issued within 15 days from the date of the Board's decision with regard to such issuance.
   
   

The reviewer shall not communicate any Report(s) unless the examination of such Report(s) and related records has been made by him or by a partner or an employee of his firm.