The Peer Review Program Overview
Refer to Chapter 527 Peer Review, of the Board Rules.
Rule 527.1(a) Pursuant to §901.159 of the Act, the board establishes a peer review program to monitor CPAs' compliance with applicable accounting, auditing and other attestation standards adopted by generally recognized standard-setting bodies. The program may include education, remediation, disciplinary sanctions or other corrective action where reporting does not comply with professional or regulatory standards.
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Services Performed That Require Enrollment In The Peer Review Program
A firm must be peer reviewed if it does audits, reviews, compilations, and any "special reports" that purport to express an opinion that the financial statements or any material portion thereof are in accordance with GAAP and the CPA firm did its engagement in accordance with the Statement on Auditing Standards (SAS) or the Statement on Standards for Accounting and Review Services (SSARS) as it applies to Reviews and Compilations (only).
A firm that does not perform any of the above services may claim an exemption.
Management Use only Compilations completed under "SSARS 19" up to December 14, 2015 will still require a peer review.
Beginning December 15, 2015, if the highest level of service performed is Preparation Engagements in compliance with "SSARS 21", the firm may claim an exemption.
Please refer to AICPA Comparison of Engagement Letter Requirements for further clarification.
Requirements For Firms Enrolling In A Peer Review Program
When a firm begins performing services that require a peer review, it is the responsibility of the firm to notify the board within 30 days of the completion of the work that the firm is subject to peer review.
- Contact a Board approved sponsor to enroll in a peer review program and obtain a review due date.
- Submit a copy of the enrollment confirmation letter from a Board approved sponsor within 30 days of receipt.
- A copy of the notification letter must be submitted to the Board, within 30 days of the receipt from the sponsoring organization.
- Check the sponsoring organization that the firm enrolled with.
- The peer review must be completed by the due date and submitted to the board within 30 days of completion.
- The 12 month deadline will be upheld but extension requests must be submitted in writing for approval.
When a review has been completed and the firm receives the Final Letter of Acceptance from the sponsoring organization, a copy of the completed review must be sent to the board along with the Peer Review Compliance Reporting Form.
- If the results of an Engagement Review or System Review was PASS send the following:
- If the results of an Engagement Review or System Review were PASS WITH DEFICIENCY(IES) OR FAIL, send the following:
° Peer Review Compliance Reporting Form (L0027) (fillable)
° Peer Review Report (PRR)
° Letter of Response (LOR)
° Conditional Letter of Acceptance (CLOA)
OR
Corrective Action Letter (CAL)
° Final Letter of Acceptance (FLOA)
° Peer Review Compliance Reporting Form (L0027) (fillable)
° Peer Review Report (PRR)
° Final Letter of Acceptance (FLOA)
Requirements For Firms Claiming An Exemption From The Peer Review Program
Firms that are not required to be enrolled in the Peer Review Program can claim an exemption (refer to Board Rule 527.4). To do this, the FORM SHOWN BELOW MUST BE COMPLETED: