SIMILARITIES
Both reviews are initiated by the Institute of Chartered Accountants of
India (ICAI) and aim to improve the quality of audit and acceptability
of the financial statements. The reviewers, in both cases, are chartered
accountants with experience, trained to carry out the work. Reviews are
carried out on the work performed by the Auditors.
DIFFERENCES
Authority: Peer review is directed by the peer review board of the ICAI,
whereas technical review is under the aegis of the Financial Reports
Review Board (FRRB) of the ICAI. Thus, though both are carried out by
the ICAI, they are carried out by two different arms.
Subject of review: Peer review is carried out on the practice unit,
which is essentially a firm of Chartered Accountants whereas technical
review is carried out on the financial statements and reporting.
Appointment: The practice unit chooses from among three names suggested
to it by the peer review board. The technical reviewer is appointed by
the FRRB.
Periodicity of review: Peer review is an ongoing process, done once in a
three-year time period while there is no such time measure for
technical review. Technical review is carried out on a financial
statement and reporting as on a particular date.
Objective of review: Peer review is carried out with the aim of
improving the overall performance of the practice unit. Technical review
is to examine the financial statements and reports of the statutory
auditor. During peer review, the reviewer examines the functioning of
the firm, audit plans and programmes, bases of accepting or rejecting an
audit evidence, adherence to standards of auditing, training of the
audit staff, maintenance of records by the practice unit, etc.
Technical reviewer works on a different set of information, such as the
format of the financial statements, notes to accounts, compliance with
the broad framework of accounting, audit report, content of report,
assurances obtained by the auditor for comments and statements in the
report, etc.
Period under review: The peer reviewer delves into the records of the
practice unit over a period of three years whereas the technical review
is confined to just one financial statement.
Size of the study: The Peer reviewer selects certain samples from the
clients, papers, documents of the practice unit. The technical review is
confined to one financial statement reporting, which is a single
document.
Modalities of working: The peer reviewer goes into the working of the
firm. Thus it is more into substantive procedures. Technical review is
more into the format, disclosure and compliance procedures. Peer
reviewer covers all types of the work performed by the practice unit
which includes tax audits, internal audits also. Technical review
confines itself only to the financial reporting.
ICAI view: The ICAI considers peer review as a hand-holding exercise
where one member of the ICAI helps another in improving the standards of
auditing. In the case of a technical review, the implications are not
the same.
These differences are exhaustive but not all-inclusive.