Statements of Position



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The AICPA Peer Review Board (the Board) is issuing this proposed Standard to update the Standards for Performing and Reporting on Peer Reviews (AICPA, Professional Standards, vol. 2, PR sec. 100) for the recently revised Statements on Quality Control Standards. In addition, now that the AICPA peer review program has been in existence for over six years, the five-year phase-in has been accomplished, and firms are undergoing their second triennial reviews, the Board believes it is appropriate to reevaluate the overall guidance provided in these Standards. In addition to the changes listed on the next page as specific issues for comments, this proposal: 1. Expands the definition of an accounting and auditing practice for the purposes of performing and reporting on a peer review to include attest services on financial information when the firm audits, reviews, or compiles the historical financial statements of the client. 2. Prohibits an individual from serving as a reviewer, whether on an on-site or an off-site peer review, if his or her ability to practice accounting and auditing has been limited or restricted in any way by a regulatory, monitoring, or enforcement body. 3. Requires the peer review, including the selection of offices to be visited and engagements to be reviewed, be planned and performed on a risk based approach. 4. Revises the basis for selecting engagements for review on off-site peer reviews. 5. Requires a reviewed firm to submit its letter of response to the team captain (on-site peer review) or reviewer (off-site peer review) for review and comment prior to submission of the document to the state CPA society administering the peer review. 6. Revises the report paragraph of the adverse report for an off-site peer review to report only on the engagements reviewed. 7. Adds a section on the evaluation of reviewers' performance and describes various actions that may be required of a reviewer if deficient performance is noted. 8. Requires all members of a state CPA society committee responsible for considering the results of peer reviews to be associated with a firm that has received an unqualified report on its most recently completed peer review. The proposed Standard would supersede the Standards for Performing and Reporting on Peer Reviews.



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Accountants -- Standards -- United States; Peer review -- Standards


Accounting | Taxation


Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants; Exposure draft (American Institute of Certified Public Accountants), 1996, June 26

Proposed AICPA standards for performing and reporting on peer reviews ;AICPA standards for performing and reporting on peer reviews;Standards for performing and reporting on peer reviews



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