AICPA On-Site Oversight of NEPR

Just as each firm is required to undergo periodic reviews, so too does NEPR. The AICPA has performed eight on-site oversight visits, which includes observation of Report Acceptance Body and Executive Committee meetings at which peer review reports are considered. In addition, samples of peer review documents and applicable working papers on a post-acceptance basis are reviewed, as well as the procedures for administering the Peer Review Program. NEPR’s first review was in 1991, just after incorporation, and subsequent reviews have been conducted every other year.  We are very pleased that all reviews have resulted in what amounts to a "clean opinion".  The next oversight visit is scheduled for the Fall of 2008.

The AICPA Peer Review Board (PRB) On-site Oversight Task Force committee member meets with the NEPR staff, technical reviewers and Executive Committee to establish a communications link that enables the PRB to obtain information about problems and concerns of the administering entity, to provide consultation on those matters, and to initiate the development of guidance on a national basis, where appropriate.

The overall objective of oversight is to provide reasonable assurance that:

• the administering entity is complying with the administrative procedures established by the AICPA Peer Review Board
• the results of reviews are being evaluated on a consistent basis in all jurisdictions.
• reviews are being conducted and reported upon in accordance with the Standards for Performing and Reporting on Peer Reviews (Standards).

AICPA Off-Site Oversight of NEPR

Each year, on a random basis, the AICPA selects a certain percentage of reviews administered by NEPR on which to perform off-site oversight.  When this occurs, NEPR contacts the reviewer requesting the full working papers, with client names masked to ensure confidentiality.  The information is then forward to the AICPA.  At the conclusion of the Peer Review Board oversight, the papers are returned to NEPR with appropriate comments and feedback.  The documents are then returned to the reviewer for appropriate action.

This off-site oversight is required to comply with the above mentioned criteria.

NEPR has consistently received high marks for its administration of reviews.