Statements of Position

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The AICPA Peer Review Board is issuing this exposure draft to update the Standards for Performing and Reporting on Peer Reviews (AICPA, Professional Standards, vol. 2 PR section 100). This proposal: 1. Replaces the term "on-site peer review" with "systemic review" in order to more accurately describe this type of peer review. On a systemic review, the reviewer expresses an opinion on the firm's system of quality control (page 7). 2. Changes the definition of engagements that require a firm to have an on-site (systemic) review. Firms that perform services listed in paragraph 4 of the Standards (which includes review engagements) are required to have a systemic review unless the only services performed are compilations. Under certain circumstances discussed in the Interpretations to the Standards, systemic reviews may be performed at a location other than the reviewed firm's office (page 7). 3. Creates a new type of peer review for firms that only perform compilation engagements called a "report review". An opinion is not issued on a report review. All other firms required to have a peer review have a systemic review. The proposal explains the objectives, basic requirements, engagement selection criteria, reporting requirements and acceptance process for report reviews. With this proposal, "off-site" peer reviews are completely eliminated (page 8). 4. Provides guidance on handling disagreements on report reviews (page 9). 5. Eliminates committee-appointed review teams (CARTs) or association formed review teams for report reviews (page 9). 6. Provides that report reviews are to be performed by only one individual and that individual is designated as the reviewer (page 9). 7. Requires that in order to qualify for service as a reviewer for a systemic review, the reviewer's firm must have received an unmodified peer review report on its system of quality control. A report reviewer must have received an unmodified peer review report on its system of quality control or an unmodified report on its "off-site" peer review (until eliminated). If a firm's most recent review was a report review, then the firm's members are not eligible to perform peer reviews (page 10). 8. Highlights the fact that systemic and report reviews are subject to oversight by the AICPA and the administering entity (page 10). 9. Requires that in order to qualify for service as a peer review committee member with the responsibility for acceptance of reviews, an individual must be associated with a firm that has received an unmodified report on its most recently completed systemic or "off-site" peer review (until eliminated). If the firm's most recent review was a report review, then the member is not eligible for committee service charged with the responsibility for acceptance of any peer reviews (page 11). The changes, if adopted after full consideration of the comments received, will be incorporated into the AICPA Standards for Performing and Reporting on Peer Reviews effective for peer reviews that commence on or after January 1, 2001. Early implementation is not allowed.

ISBN

ed99-05-17bt

Publication Date

1999

Relational Format

Book

Keywords

Accounting -- Quality control; Accountants -- Rating of -- United States; Peer review -- Standards

Disciplines

Accounting | Taxation

Comments

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), 1999, May 17

Proposed revisions to the 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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