Definition
The AICPA Peer Review Program is a practice-monitoring program overseen by the AICPA Peer Review Board and administered by approved entities such as state CPA societies. The program issues standards and guidance for how reviews are planned, performed, reported and followed up. Enrollment is generally required of AICPA member firms that perform audits and certain other engagements, and many state boards require it as well.
Why it matters in an audit or review
The administering entity schedules the review, approves reviewers, checks the reports, and decides on corrective actions through a peer review committee. Firms submit information such as a list of engagements, then provide the reviewer with files and the quality documentation. Rules differ on who may see the report and the review documents, and firms often share the report with clients.
Example
A new firm that will perform audits enrolls in the program. Its first review is generally due 18 months after enrollment (illustrative timing; the administering entity schedules it). The firm uses the time to put its quality documentation in place and arranges a reviewer through the entity.
Common mistakes
Enrolling late. Gaps in enrollment can cause problems with state boards and with the AICPA membership.
Sources
- AICPA, Standards for Performing and Reporting on Peer Reviews (AICPA Peer Review Board)
- AICPA, Peer Review Program Administrative Manual (PRPM)
- AICPA, SQMS No. 1, A Firm's System of Quality Management
Definitions paraphrase AICPA and FASB guidance; read the standard itself before relying on a requirement. Example figures are illustrative. This page is guidance, not professional advice. Report an error