Glossary/Quality and peer review

Matters for further consideration

Matters for further consideration (MFCs) are issues reviewers note during a peer review that need evaluation but are not yet findings. They are documented on a form that can be elevated.

CORAA TeamUpdated November 5, 2026

Definition

A matter for further consideration (MFC) is a documented item from a peer review that a reviewer believes warrants further evaluation. It often begins with a negative answer on a checklist, such as a missing procedure or documentation. The reviewer evaluates the nature, pattern, cause and pervasiveness of the matter and decides whether it should be elevated to a finding.

Why it matters in an audit or review

MFCs are logged on a form that the firm must answer on time; failing to respond to MFCs or findings for further consideration (FFCs) on time can lead to a hearing on whether the firm's enrollment should be terminated. If the reviewer concludes a matter does not warrant a finding, it goes no further. The same issue across several engagements can lead to an FFC, and findings can be elevated to deficiencies. Firms treat the MFC list as an early warning and fix the cause before it spreads.

Example

Illustrative: a reviewer notes that on one of five audits the firm did not obtain a signed management representation letter before releasing the report. That is documented as an MFC. The firm reviews its other files, finds the same lapse on one more, adds a release checklist item, and tells the reviewer. The reviewer concludes the matter does not rise to a finding.

Common mistakes

Responding to the MFC about one file without checking whether the problem exists across the practice.

Sources

  • AICPA, Standards for Performing and Reporting on Peer Reviews
  • AICPA, Questions and Answers About the AICPA Peer Review Program (June 2025)

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

Standards

AICPA Standards for Performing and Reporting on Peer Reviews

Related terms

  • Peer review
    Peer review is an independent evaluation of a CPA firm's accounting and auditing practice by another qualified CPA. Firms that audit generally need one every three years under the AICPA program.
  • Peer review ratings
    Peer review ratings are pass, pass with deficiency(ies) and fail. A pass means the firm's system was suitably designed and complied with. A fail means significant deficiencies show it was not.
  • AICPA Peer Review Program
    The AICPA Peer Review Program is the practice-monitoring program run by the AICPA and administered by state CPA societies and other entities. Firms that audit generally enroll and are reviewed every three years.
  • Monitoring and remediation
    Monitoring and remediation is the SQMS No. 1 component under which a firm checks whether its quality responses work, finds deficiencies, determines root causes and fixes them.

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