April 12, 2005 -- Peer reviews are carried out in compliance with the AICPA Peer Review Board under the supervision of a state CPA society or group of state societies that the Board approves.  The Board evaluated the program and revised its standards for performing and reporting on peer reviews for firms that do not audit SEC registrants in order to enhance the quality of firms’ accounting and auditing practices and protecting the public interest.  The revised standards, effective for reviews commencing on or after January 1, 2005 , will enhance the quality of peer reviews and increase the usefulness of peer review reports to the public and regulators as well as to reviewed firms. 

The public has a reasonable expectation that the working methods of every firm performing an audit be validated by a system review.  The enhancements have not changed the fact that there are three types of peer reviews (system, engagement, and report reviews).  The revised standards will affect all 30,000 firms enrolled in the AICPA peer review program and the state societies that administer it.  Firms will notice changes in the reports and will need to implement additional procedures for their next peer review. 

Some of the revisions to the AICPA Peer Review Program Standards:

• Timing – Reviewed firms will have to provide written representations concerning the information they give to peer reviewers and administering entities.

• Engagement Selection – For system reviews, peer reviewers must notify the firm no earlier than two weeks before commencement of the review which engagements will be reviewed.

• Reports & Letters of Comments – There will be changes to the peer review reports and letters of comments designed to enable users to better understand the peer review process and any matters identified during reviews.

• Oversight – To improve the overall process and provide more credibility to the program, the Board has strengthened the oversight policies and procedures.

The Peer Review Board believes that the adopted enhancements will help to ensure that the program continues to support the highest quality of accounting and auditing practices of public accounting firms and that its objectives are relevant, efficient, modern and valid.

The revised standards, interpretations and additional guidance should be consulted for all revisions to the standards by visiting the AICPA Web site, www.aicpa.org, or contacting an Asher professional at 215-564-1900 .

Back to News Archive