ICAI FAVOURS PEER REVIEW OF SOCIAL SCHEMES

The audits of government schemes like the national rural employment guarantee act by professional auditors will be subject to peer review, accounting regulator the Institute of Chartered Accountants of India (ICAI) has said. The government is in the process of selecting audit firms through a tender process where the assignment will be awarded to the firm quoting the lowest fees. The ICAI fees the method of selection runs the risk of compromising the quality of audit. ACCOUNTING regulator
ICAI is opposed to the tendering process of selecting accountants for auditing state-run schemes and has taken up the issue with the Planning Commission and the CAG. The ICAI wants the appointment to be done through fixing the fees district-wise and not through tender saying it may lead to compromise of audit work.