Sections 28A explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Chapter VIIA of the Act creates the Quality Review Board. The Board reviews the quality of services provided by members, including audit services, recommends improvements to the Council, guides members and, since 10 May 2022, forwards cases of non-compliance to the Disciplinary Directorate. This article follows the text as per the Act as printed in the ICAI edition of 2022 (amended up to the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2022).
The Central Government constitutes, by notification, a Quality Review Board of a Chairperson and ten other members, five nominated by the Council and five by the Central Government. The Board makes recommendations to the Council, reviews the quality of members' services including audit services, guides members, and forwards cases of non-compliance noticed in its reviews to the Disciplinary Directorate. The chapter was inserted in 2006, and clause (d) of section 28B is in force from 10 May 2022.
Why a quality board
The disciplinary chapter works on complaints. The Quality Review Board works on review: it looks at how services are being delivered and feeds what it finds back to the Council and to members. Where its review turns up non-compliance, the 2022 amendment gives it a route into the disciplinary process. Chapter VIIA was inserted by the Chartered Accountants (Amendment) Act, 2006, in force from 17 November 2006.
Practitioners who audit, firms that take on attest work and clients who rely on audit reports all have an interest in how the Board works. If you want help organising a practice's working papers and documentation for a review, our compliance advisory team can help.
Section 28A: establishment of the Board
| Sub-section | What it says |
|---|---|
| 28A(1) | The Central Government shall, by notification, constitute a Quality Review Board consisting of a Chairperson and ten other members |
| 28A(2) | The Chairperson and members are appointed from amongst persons of eminence having experience in the field of law, economics, business, finance or accountancy |
| 28A(3) | Five members are nominated by the Council and the other five by the Central Government |
So the Board has eleven seats in all: the Chairperson and ten members. The Act does not say who nominates the Chairperson separately; sub-section (2) says the Chairperson and members "shall be appointed" from the persons of eminence, and sub-section (1) puts the constitution in the hands of the Central Government. The sub-sections say nothing about the term of office; terms are in the service conditions that are "specified" (see section 28D below).
Section 28B: functions
The Board performs the following functions:
- (a) to make recommendations to the Council with regard to the quality of services provided by the members of the Institute;
- (b) to review the quality of services provided by the members of the Institute, including audit services;
- (c) to guide the members of the Institute to improve the quality of services and adherence to the various statutory and regulatory requirements; and
- (d) to forward cases of non-compliance with various statutory and regulatory requirements by the members of the Institute or firms, noticed by it during the course of its reviews, to the Disciplinary Directorate for its examination.
Clause (d) was inserted by the 2022 Amendment Act and is in force from 10 May 2022. It is a one-way link: the Board forwards, and the Disciplinary Directorate examines. The clause does not make the Board a disciplinary body and gives it no power to impose a penalty. The Directorate's job is explained in our article on section 21 and the Director (Discipline).
The words "or firms" in clause (d) are in force as printed. The registration of firms in Chapter IVA is a separate matter and is not yet in force; our article on sections 20A to 20D explains it.
Section 28C: procedure of the Board
The Board shall meet at such time and place and follow in its meetings such procedure as may be "specified". Under section 2(1)(ha), "specified" means specified by rules made by the Central Government under the Act. The edition's footnote names the Chartered Accountants (Procedures of Meetings of Quality Review Board, and Terms and Conditions of Service and allowances of the Chairperson and members of the Board) Rules, 2006, published in the Gazette on 5 December 2006. This article takes no meeting procedure from those rules.
Section 29A(2)(f) of the Act, on the Central Government's rule-making power, lists the procedure to be followed by the Board in its meetings under section 28C. See our article on sections 29 and 29A.
Section 28D: terms and conditions, and expenditure
28D(1). The terms and conditions of service of the Chairperson and the members of the Board, and their allowances, shall be such as may be "specified", that is, in rules of the Central Government, the same Rules of 2006 named in the footnote.
28D(2). The expenditure of the Board shall be borne by the Council.
Together, sections 28C and 28D(1) leave the day-to-day detail to rules, while 28D(2) puts the cost on the Institute.
What the Board is not
- It is not the Disciplinary Directorate, the Board of Discipline, the Disciplinary Committee or the Appellate Authority. Those bodies are in Chapter V and section 22G.
- It does not, on the text, decide misconduct or impose penalties.
- It does not appear in the Schedules as a body to be obeyed, with one exception: Part III of the First Schedule makes it misconduct for a member not to supply information called for or comply with requirements asked by the Quality Review Board (among others), and Part II of the Second Schedule makes it misconduct to include false particulars in any information, statement, return or form submitted to it. Our articles on the First Schedule Parts II to IV and the Second Schedule items explain those items.
The site's note on professional misconduct, tax audit and the TAQRB review deals with a review in tax-audit practice.
A worked example
During a review, the Board notices that an audit firm's working papers for several engagements do not meet a statutory requirement. Under section 28B(c) it can guide the members in improving; under section 28B(d) it can forward the cases it noticed during its reviews to the Disciplinary Directorate for examination. What follows is for the Directorate under Chapter V. A member asked by the Board for information should respond: not supplying information called for by the Board is itself an item in Part III of the First Schedule.
Commencement note
Chapter VIIA is in force. Clause (d) of section 28B is in force from 10 May 2022. Later amendments and notifications should be checked.
Need help preparing for a quality review?
A review looks at how a practice documents and delivers its services. Our compliance advisory team can help you organise engagement records and procedures with the statutory requirements in view.
Key takeaways
- The Board has a Chairperson and ten members: five nominated by the Council, five by the Central Government.
- Its functions: recommend to the Council, review quality including audit services, guide members and forward non-compliance cases.
- Clause (d), forwarding cases to the Disciplinary Directorate, is in force from 10 May 2022.
- Procedure and service terms are "specified" in Central Government rules; the Council bears the Board's expenditure.
Read next
- Section 21: the Disciplinary Directorate and the Director (Discipline)
- Sections 29 and 29A: reciprocity and the Central Government's rules
- Professional misconduct, tax audit and the TAQRB review
- Cost Accountants Act, 1959: sections 29A to 29D, Quality Review Board
Disclaimer: Based on the Chartered Accountants Act, 1949 as printed in the ICAI edition of 2022 (amended up to Act 12 of 2022), read with S.O. 2184(E) dated 10 May 2022, which brought only part of the 2022 amendments into force, as consulted on 3 October 2026. Regulations, rules, Council guidelines, later amendments and commencement notifications should be checked. This article is general information, not legal advice; check the official text before acting.