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