Commencement Date

System Reviews
A peer review commences when the review team begins field work on a system review. Field work ordinarily begins the date the reviewer/review team arrives at the reviewed firm’s office. Understandably reviewers/review teams will likely perform some preliminary work/planning prior to arrival at the reviewed firm’s office. In those circumstances, judgment must be used in determining whether the fieldwork has started at some time prior to arrival, particularly when any preliminary work allows a reviewer to determine that there is a strong likelihood that there are significant deficiencies with the firm’s system of quality control or engagements selected for the peer review.

Example: The team captain for ABC firm has started the planning for the system review. The team captain is expected to commence fieldwork on October 15, 2008. ABC firm has a due date of November 30, 2008. The firm requests an extension to January 31, 2009 because the Managing Partner has become seriously ill and needs to participate in the peer review since he performs the majority of the audit engagements. The extension is granted and the team captain begins fieldwork on January 10, 2009. Although the team captain has performed all the planning and should have commenced fieldwork in October, the review would need to be done under the new Standards because fieldwork was actually commenced after January 1, 2009.

Peer reviewers are expected to perform system reviews at the reviewed firm’s office unless it is performed under Interpretation No. 1 “System Reviews Performed at a Locations Other Than the Practitioner’s Office” or Interpretation No. 7 “Performing System Reviews at a Location Other Than the Reviewed Firms Office” (for peer reviews commencing on or after January 1, 2009). If the system review is performed at a location other than the reviewed firm’s office, field work begins when the review team starts to review the documents submitted by the reviewed firm.

Engagement and Report (prior to 1/1/09) Reviews
For engagement and report reviews, commencement is defined as when the reviewers begin the review of engagements. Report reviews are not available for reviews commencing on or after January 1, 2009. Therefore, if the firm submits engagements for a report review to the reviewer prior to 1/1/09 and the reviewer reviews those engagements after 1/1/09, the reviewer should perform an engagement review and issue the appropriate report under the new Standards.