SME IPO Readiness · Question

What is a peer-reviewed auditor and does an SME IPO need one?

Short answer

A peer-reviewed auditor is a chartered accountant or firm holding a valid peer review certificate from the professional institute, meaning its audit quality has been independently examined. For an IPO, the financial statements in the offer document are expected to be examined and reported on by such an auditor, so yes, an SME IPO normally needs one, and your current auditor may or may not qualify.

In more detail

Peer review is a quality check run by the accounting profession on its own members. Another reviewer inspects how a firm plans, documents and supervises its audits and issues a certificate if standards are met. The certificate has a validity period and has to be current when it matters.

For a public issue, regulators want comfort that the historical numbers investors rely on were handled by an audit practice whose work has been tested. That is why the restated financial information in the offer document is signed by a peer-reviewed auditor, and why the exchange will look for the certificate while processing your application.

Many small companies have a long-standing local auditor who is not peer reviewed. You then have three paths:

Ask the existing auditor whether they hold, or are applying for, the certificate.
Appoint a peer-reviewed firm for the restatement and examination work while the statutory audit continues.
Change statutory auditors, following the proper company law process for appointment and resignation.

Do not leave this to the last month. A new auditor needs time to understand the business, rework the past years and raise queries on gaps. Their findings often shape the clean-up of books described elsewhere in your preparation.

Check validity, not just existence

Ask for a copy of the certificate and confirm it is valid on the dates your documents will be signed.

Requirements on auditor eligibility can be refined by the regulator, so confirm the current position with your merchant banker.

Key points

Peer review is a profession-run quality check; the certificate has a validity period.
The auditor reporting on restated IPO financials is expected to hold a valid certificate.
Changing or adding an auditor early avoids delays during the examination of past years.
Ask for the certificate copy and verify its dates before engaging anyone.

Who this applies to

Companies with a small local statutory auditor who may lack the certificate.
Finance heads planning the audit and restatement work before filing.
Promoters wanting early clarity on who will sign off the numbers.

Last reviewed 3 October 2026

This answer is general information, not advice on your particular case. Terms, eligibility, and requirements change, so check the current position with the relevant institution or authority. Lalsar Holdings' financial advisory and financing work is advisory and facilitation only. Lalsar Holdings is not a lender. Sanction and disbursement of any credit facility is at the sole discretion of the partner bank, NBFC, or financial institution involved, subject to their own eligibility criteria and credit policy.