The AICPA Peer Review Board develops the Peer Review Program Manual (PRPM) and provides you with up-to-date standards, policies, procedures, checklists and requirements on annual basis. The changes made depend on new laws and policies, targets and objectives.
As at December 31, 2015, the following AICPA peer review requirements were included:
- Reviewers must have spent the last five years in the A&A function of public accounting.
- Reviewers should consider whether their day-to-day involvement with A&A work is sufficiently comprehensive to enable them to perform a peer review with professional expertise
- Reviewers must be currently involved in must-select engagements in their own firms.
- Reviewers must be associated with an external peer review team.
The 2016 External AICPA peer review checklist had some changes based on improving the entire review process.
AICPA Peer Review Checklist for consideration:
1. Confidentiality of the Program :
Key aspects of the final guidance are:
- RAB should receive all peer reviews within 120 days after been issued with the checklist. However, there are circumstances that may delay presentation.
- The external peer review team and the AICPA should not provide information regarding a firm or its peer review to third parties unless allowable by paragraph .146 of the Standards or if permission is granted by the firm. If the firm grants permission, the AE or AICPA may disclose objective information only.
2. SEC Independence:
The changes help reviewers identify the risk that a firm may not be aware they are subject to SEC independence rules and the risk that they could be issuing the AICPA peer review reports when they are dependent.
3. Peer Review Documentation Retention Policy:
The new interpretation allows the AICPA and the external peer review team to retain certain peer review documentation. Any anonymous peer review monitors trends in peer review, facilitate research and otherwise promote quality in the accounting and auditing services provided by CPA firms.
4. Other Facts:
- 22110 Supplemental Checklists for Review of Audit Engagements Performed in Accordance with Government Auditing Standards and AICPA peer review policies.
- 22120 Supplemental Checklist for Review of Agreed Upon Procedures and Other Attestation Engagements Performed in Accordance With Government Auditing Standards.
- (Yellow Book) December 2011 Revision Supplemental Checklist for Review of Audit Engagements of State and
Local Governments Participating in Pension Plans Subject to GASB Statement No. 68 (PRPM Section 22130) is now available.
Conclusion: The AICPA monitors all peer reviews in business firms. It releases an annual AICPA peer review checklist to help the reviewers cover all mandatory areas. Visit their website regularly for the supplemental updates. If you need external AICPA Peer Review Services, you can get in touch with a top rated CPA firm in Gaithersburg, MD.