Common Questions About Peer Review Enrollment
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The following questions and answers were excerpted from: Common Questions About the AICPA Peer Review Program Update No. 6 Published January 2006.
Q. Does my firm have to enroll in a peer review program if it does not have an accounting and auditing practice?
A. The short answer to this question is no. However, it is important to know that, effective March 1, 2007, the State of Michigan passed legislation requiring that all firms and sole practitioners performing audits, reviews and compilations relied upon by third parties be enrolled in a Peer Review program. The new requirement becomes effective for firms and sole practitioners whose attest services include audits beginning March 1, 2008; for firms and sole practitioners whose attest services include, but do not exceed, reviews or compilations with disclosures beginning March 1, 2009; and for firms and sole practitioners whose attest services include, but do not exceed compilations without disclosures relied upon by third parties by March 1, 2010. Additionally, in order to be admitted or retain their membership in the AICPA, members of the AICPA who are engaged in the practice of public accounting in the United States or its territories are required to be practicing as partners or employees of firms enrolled in an approved practice monitoring program. If a firm does not perform services that include issuing reports purporting to be in accordance with AICPA professional standards, it is not requires ot enroll in a practice-monitoring program.
Q. Does my firm have to enroll in a peer review program if the only engagements it performs are compilations issue with engagement letters and without a report detailed in SSARS No. 8?
A. Under the AICPA bylaws, firms (or individuals in certain situations) are only required to enroll in an Institute-approved practice monitoring program when the engagements they perform are within the scope of the AICPA’s practice-monitoring standards and issue reports purporting to be in accordance with AICPA professional standards. Therefore, in the case where the (engagement letter) compilations for management’s use only are the highest level of service performed by the firm, they would not be required to enroll in the AICPA Peer Review Program because no report is issued. However, firms must check with their Board of Accountancy peer review requirements as some require firms to enroll and have a peer review in this circumstance. For firms already enrolled (and that stay enrolled) in the AICPA Peer Review Program, these engagements currently would fall within the scope of peer review and would require a firm to undergo a peer review.
Q. Do individuals who are practicing outside of the U.S. have to enroll in a peer review program?
A. Do individuals who are practicing outside of the U.S. have to enroll in a peer review program?
Individuals practicing in firms outside of the United States or its territories are exempt from the AICPA practice monitoring program requirement until they return to the United States or its territories. Please check with your Board of Accountancy or other regulatory peer review requirements as some may require you to have a peer review in this circumstance.
Q. How do I enroll?
A. Download the AICPA's Peer Review Enrollment Form.
