Answers
-
AICPA members active in the practice of public accounting must be
associated with a firm that participates in an AICPA practice-monitoring
program if the firm performs services within the scope of the peer
review standards and issues reports in accordance with AICPA
professional standards. The objectives of these programs are to help
CPAs improve the services provided and to raise the quality and prestige
of the profession. AICPA members in the practice of public accounting
with a firm auditing one or more public companies may be associated with
that firm only if it is a member of the SEC Practice Section. The firms
of other AICPA members may join either the AICPA Peer Review Program or
the SEC Practice Section.
- A firm should submit an "AICPA Peer Review Programs Enrollment Form" to
the AICPA Practice Monitoring team. By enrolling, a firm agrees to
comply with the AICPA's quality control standards and to have a peer
review of its accounting and auditing practice every three years. A firm
seeking to enroll in the peer review program should be in compliance
with the Council resolution concerning form of organization (see AICPA Professional Standards, vol. 2 ET Appendix B). In addition,
at least one owner of the firm must be an AICPA member in order to
enroll in the AICPA Peer Review Program.
Download the AICPA Peer Review Program
enrollment form or request a form from NEPR. You may view and print
this form using Acrobat Reader. If you do not have Acrobat Reader, you
can download it from
www.adobe.com/prodindex/acrobat/readstep.html
- 42,084 firms are enrolled in the AICPA Peer Review Program.
- No, the firm is not required to enroll, but it should enroll if it
begins performing audit, review, compilation or attestation engagements.
The review would generally take place within eighteen months of the
fiscal year end of the engagement accepted.
- Generally, a firm's first review is due within eighteen months of
enrolling. However, a review may be due earlier if the firm was
previously enrolled in the program or the SEC Practice Section, or
didn't enroll when it was required to.
- Yes, firms performing one or more engagements under the SASs, or
examinations of prospective financial statements have system peer
reviews (reviews commencing 12/31/00 and earlier were called "on-site"
reviews). Firms that do not perform any of these engagements may have a
less comprehensive engagement or report peer review. These reviews are
explained in more detail in the Standards for Performing and
Reporting on Peer Reviews on this web site.
- The AICPA Peer Review Program is administered in cooperation with the
state CPA societies who elect to administer the program. Generally, a state CPA society administers peer reviews of those firms whose main
offices are located in that state and in those states, if any, that the
society has been asked to administer. Reviews of firms located in New
Hampshire, Vermont, Maine and Rhode Island are administered by
New England Peer Review, Inc.
- A firm may ask another qualified firm, an association of which it is a
member, or the state CPA society administering its review to appoint a
review team (CART) to perform its system, engagement or report peer
review. The firm is free to choose the type of review team that best
serves its needs. However, all societies do not offer CART reviews.
- Enter your resume at the AICPA reviewer website at:
http://peerreview.aicpaservices.org/default.asp
- Reviewer requirements—
- Be an AICPA member in good standing
- Have a current CPA license
- Be associated as an owner, employee or as a leased or per
diem employee who spends at least 25% of their time in performing
audits, reviews, compilations, or other attest engagements with an
enrolled firm that, if reviewed, has received an unmodified opinion
on its system of quality control for its most recent completed peer
review or an unmodified report on its off-site or engagement review.
- Possess current knowledge of applicable professional
standards
- Be currently active in public practice at a supervisory level
in the accounting or auditing function of a firm that is enrolled in
the AICPA Peer Review Program or a member of the SEC Practice
Section of the AICPA Division for CPA Firms (an "enrolled firm").
- Achieved the level of either owner or manager or person
(including a leased or per diem employee who spends at least 25% of
their time in performing audits, reviews, compilations or other
attest engagements) with equivalent supervisory responsibilities.
- Must have at least 5 years of recent experience in the
accounting and auditing function of an enrolled firm
- Must not have his or her ability to practice accounting or
auditing limited or restricted in any way by a regulatory,
monitoring or enforcement body.
- Must meet the minimum continuing professional education
requirements in subjects relating to accounting and auditing, under
Interpretation No. 4 of the Standards
Additional Requirements for System Review Team Captains—
- Must be an owner of an enrolled firm that has
received an unmodified opinion on its system of quality control for
its accounting and auditing practice for its most recently completed
peer review. If the individual is associated with more than one
firm, then each of the firms the individual is associated with
should have received an unmodified report on its most recently
completed peer review of its accounting and auditing practice
- Must have completed an approved reviewer's
training course during the 5 year period prior to the commencement
of the review
Additional Requirements for Engagement or Report Reviewers—
- Must be associated as an owner, employee, or as
a leased or per diem employee who spends at least 25% of their time
in performing audits, reviews, compilations, or other attest
engagements with an enrolled firm that has received, on its most
recently completed peer review, either an unmodified opinion on its
system of quality control or an unmodified report on its engagement
or off-site review. If the individual is associated with more than
one firm, then each of the firms the individual is associated with
should have received an unmodified report on its most recently
completed peer review of its accounting practice.
- Must have completed an approved reviewer's
training course during the 5 year period prior to the commencement
of the review
- How many reviews has the individual performed?
How much experience does the reviewer have in the industries in
which my firm performs?
Will the reviewer be able to complete the review on time, allowing
you enough time to submit the report, letter of comments and letter of
response, if any, to the state CPA society by your firm's review due
date?
Ask the reviewer for a list of firms for which he or she has
conducted peer reviews.
Are there any other value-added services you can provide me during
the peer review?
- All firms should establish and maintain appropriate quality control
policies and procedures and comply with those policies and procedures to
ensure the quality of the services they provide to the public. Several
publications are available from the AICPA's Order Department, such as
the Standards for Performing and Reporting on Peer Reviews, the
AICPA Peer Review Program Manual subscription service, and the
Guide for Establishing and Maintaining a System of Quality Control for a
Firm's Accounting and Auditing Practice. The peer review program
standards and quality control standards are available in the AICPA
Professional Standards Vol. 2.
- The cost of a system review for an average firm will vary between
$1,500 to $3,500
depending on the size and nature of the firm's
accounting and auditing practice. For example, a firm whose practice is
70% accounting and auditing and 30% tax may pay more than a firm with
the opposite mix. Moreover, a firm with audits in various specialized
industries may pay more than a firm with the same number of audits that
are all in one industry or in non-specialized areas. In addition to the
review costs that will be incurred every three years, firms may also pay
an annual administrative fee to their administering entity to cover the
costs of running the program and/or fees for scheduling and evaluating
the results of the review.
- When deficiencies are found, the firm is expected to identify and
take corrective measures to prevent the same types of deficiencies from
happening in the future. Such actions could include making appropriate
changes in its quality control system or having its personnel take
additional continuing professional education in specified areas. The
administering state CPA society may also ask the firm to agree to other
actions it deems appropriate. The main objective of a review is to help
the firm improve the quality of its practice.
- You should discuss the findings and recommendations with the team
captain and suggest alternative recommendations for improvement.
- The latest peer review report, letter of comment and letter of response
for a firm that is a member of PCPS or the SEC Practice Section may be
obtained by calling 1-800-CPA-FIRM. Peer review results for firms
enrolled in the AICPA Peer Review Program are confidential. However, the
reviewed firm is allowed to give you a copy if it chooses to do if
asked.
- If you have filed form S-8 with the Securities and Exchange Commission
you may be eligible to join the AICPA Peer Review Program. However, you
should first consult with the SEC Practice Section at 201 / 938-3030.
- Enrollment in the peer review program is required as a condition for
voluntary membership in the AICPA. However, the peer review program is
an important element of self-regulation by the profession and in order
to protect the public interest a firm may not resign during the course
of its peer review except under certain circumstances. The peer review
commences when the reviewer begins the fieldwork on a system peer review
or begins review of the engagements on an engagement or report peer
review. The review ends with completion of any action deemed necessary
by the peer review committee and the firm is notified of the acceptance
of the review by the administering entity's report acceptance body.
|
|
