Peer Review - Information Required for Scheduling a Peer Review
Background Form
Do not panic at the length of this form. It is a generic form designed to accommodate all firms. The type of review your firm will need can not be verified until the form is complete. As you fill out the form, you will find areas that do not apply. You may ignore them. Following are some clarifications to be considered while filling out this form to insure accurate and timely scheduling of your review.
Questions 1-14 (to be completed by all firms)
Questions 1-3
These sections are self-explanatory. However, if your firm address has changed from the one printed, please be sure to include the correct information at Question 1.
Question 9
It is important to complete this section in its entirety. This is the area that determines the type of review required. Note: If the firm does not perform audits, the levels of service checked in Section 9 should match those indicated on Page 11. For example, if only “Compilations of financial statements with disclosures” is checked Yes, in Question 9, Page 11 should only indicate compilations with disclosures (C) under the level of service heading for the appropriate industry. Likewise, if “Reviews of financial statements” and “Compilations of financial statements with disclosures” are checked Yes, in Question 9, both levels of service (R) and (C) should be indicated under the level of service heading for the appropriate industry on Page 11.
Question 12
The review type, based on the information checked in Question 9, should be noted in this area. Firms performing only compilations without disclosures are eligible for a Report Review. Firms performing compilations with disclosures and/or reviews are required to have an Engagement Review. Firms performing audits are required to have a System Review.
Question 14
This section deals with how and from what organization to secure a qualified reviewer. Firms having a System Review should check the “Firm-on-Firm” box. These firms will need to negotiate with another qualified firm to perform the review. Be sure to provide the reviewing firm’s information on Exhibit 2, Pages 13 and 14. This allows the MACPA the opportunity to perform a crosscheck to verify that the selected firm has the appropriate qualifications to perform your review. If they are not qualified, the review might have to be performed again by a different firm. Firms required to have a Report or Engagement Review may elect to have a firm-on-firm review. In that case, they would also negotiate with a third party to do the review and provide the reviewing team information on Exhibit 2. The difference is that report or engagement checklists would be used rather than system checklists. A list of firms interested in doing reviews is available on this web site for firms looking for a reviewer.
Firms having a Report or Engagement Review may check the “Committee-Appointed Review Team” box that indicates the firm wishes the MACPA to assign their review to a qualified reviewer. The MACPA will request copies of financial statements, based on the information provided on Page 11. Once these documents are received, a reviewer will be assigned by the MACPA to perform the review.
Firms belonging to an association (other than the MACPA) that is authorized by the AICPA to provide peer review services may elect to have the review done by that association. The “Association” box should be checked and the review team information must be provided on Exhibit 2 to accommodate the crosscheck step and any future follow up requirements.
Pages 8 & 9
These pages may be referred to in completing Question 14
Page 10 (to be completed by those firms having a Report or Engagement Review only)
Page 11 (to be completed by those firms having a Report or Engagement Review only)
Using the Industry Codes on Page 12, indicate the industries, in column one, for which your firm performs engagements. In column two, circle the level of engagements (review, compilation with disclosures, without disclosures or attestations) for each of those industries. For each owner (columns 3, 4 & 5) indicate the number of engagements for each level on the corresponding line in column two. It is important that this page corresponds with Question 9 on Page 2.
Page 12
This is specifically a reference page for completing Page 11.
Pages 13 & 14 (“Exhibit 2, Information for Review Teams Formed by Qualified Firms”)
These pages are to be completed by firms having a System Review, firms electing to have a Firm-on-Firm Report or Engagement Review or firms utilizing the services of an association other than the MACPA.
Question 18 (to be completed by those firms having a System Review only)
Firms having a System Review should check all boxes indicating areas in which the firm practices.
Question 19 A & B (to be completed by those firms having a System Review only)
Firms should check all boxes in column 1 for industries in which the firm practices. Firms should also check all boxes in column 2 for industries which represent a minimum of ten per cent of the firm’s Auditing practice hours.
Questions 20-25 (to be completed by all firms)
