AICPA Publishes New Peer Review Standards

At its meeting last month, the AICPA Peer Review Board adopted revisions for the AICPA Standards for Performing and Reporting on Peer Reviews (Standards). Press releases, publications and other membership communications about the revisions are in process, but here is a preview of the new standards:

All changes will be effective January 1, 2001.

There will be three types of peer reviews:

  • System Review: Essentially the same as the old on-site peer review, this is for firms performing engagements under the SASs and/or examinations under SSAEs of prospective financial information.
  • Engagement Review: For firms not required to have a System review, similar to the old off-site peer review. Additional objectives will include determination of whether the working paper documentation is in compliance with the SSAE's and SSARS in all material respects.
  • Report Review: Suitable for firms that only perform compilations that omit substantially all disclosures. A technical review will be required, and the administering entity can impose monitoring actions on the firm being reviewed.

Additional revisions include:

  • Administrative guidance on billing issues will be forthcoming for Committee Appointed Review Teams.
  • Individuals designated as reviewers must be approved by the entity administering the review.
  • Guidance on handling disagreements is forthcoming.
  • If a firm's most recent review was a report review, the firms members are not eligible to perform peer reviews, nor ar ethey eligible to be charged with the responsibility for acceptance of any reviews.

More guidance will be forthcoming from the Peer Review Board in the coming months.

You may like these other stories...

The Auditing Standards Board of the American Institute of CPAs (AICPA) has issued two new audit interpretations intended to help auditors navigate the pension accounting guidelines for state and local governments that were...
The responsibilities of the CFO and other finance professionals have moved way beyond just corporate accounting and financial reporting. Finance teams must now be well-versed in such areas as strategic business planning, IT...
The number of CPAs and financial executives who are optimistic about the US economy has surpassed the 50 percent mark for the first time since the recession, according to results of a new survey released by the American...

Upcoming CPE Webinars

Jul 16
Hand off work to others with finesse and success. Kristen Rampe, CPA will share how to ensure delegated work is properly handled from start to finish in this content-rich one hour webinar.
Jul 17
This webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.
Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.