oversight of peer reviews and reviewers
NEPR's Peer Review Committee is solely responsible for monitoring and evaluating peer reviews of those firms whose main offices are located in its states. Administering entities are required to submit their oversight policies and procedures to the Peer Review Board(PRB)
on an annual basis. In conjunction with the NEPR personnel, the committee establishes oversight policies and procedures that at least meet the minimum requirements established by the PRB to provide reasonable assurance that:
- Reviews are administered in compliance with the administrative procedures established by the PRB.
- Reviews are being conducted and reported upon in accordance with the Standards.
- Results of reviews are being evaluated on a consistent basis.
- Information disseminated by NEPR is accurate and timely.
Throughout the year, NEPR selects various peer reviews for oversight. The selections can be on a random or targeted basis. The oversight may consist of doing a full working paper review off-site, after the review has been performed
(off-site oversight), but prior to presenting the peer review documents to the committee. The oversight may also consist of having a committee member or designee actually visit the firm while the peer review team is performing the review
(on-site oversight). As part of its oversight process, the NEPR Committee oversights both firms being reviewed as well as reviewers performing reviews.
Firms
We believe oversight to be a vital
component in ensuring the integrity of the Peer Review Program. NEPR
will not consider a waiver from an oversight unless
a firm is able to substantiate extreme and/or justifiable circumstances.
If you believe this to be the case, please send a letter to NEPR,
detailing the circumstances. Each waiver request is evaluated
on a case-by-case basis.
The selection of firms to be reviewed is based on a number of factors, including, but not limited to,
random selection, the types of peer review reports the firm has previously received, whether it is the firm’s first system review (after previously having an engagement or report review), and whether the firm conducts engagements in high risk industries.
Reviewers
All peer reviewers are subject to oversight and they may be selected based on
a number of factors, including random selection, frequent submission of
unmodified reports without a letter of comments, conducting a significant number
of reviews for firms with audits in high risk industries, performance of their
first peer review, or performing high volumes of reviews.