Peer Review Budgets - Engagement Reviews

Peer Review Guide

Peer Review Guide > Common Peer Review Budgets > Engagement Reviews

A budget is based on the actual time it typically takes a reviewer to perform the peer review. This time includes planning, performance, the exit conference and report writing. The rates and fees charged for a firm-on-firm review are negotiated directly between the firm and reviewer. The actual cost of a peer review depends on the complexity of the matters that arise during the review and the time the firm has spent preparing for its peer review.

As a general rule, the review time, including report writing and the exit conference time averages approximately 1 3/4 hours for each financial statement submitted. Compilations without full disclosure require less time. The chart below shows the typical budget ranges for engagement reviews.

The estimated cost of an engagement review or report review will range between $400 and $900, based on the size of the practice and the number of owners responsible for the issuance of review, compilation and attestation engagement reports.

In addition to the review costs that will be incurred every three years, firms may also pay an annual administrative fee to the administering entity to cover the costs of running the program and, in some states, in the review year, fees for scheduling the review and evaluating the results of the review.

Number of Reports	Estimated Reviewer Hours to Perform
1	2 - 4 (without disclosures 1.5 - 3)
2	4 - 6 (without disclosures 2 - 4) (one of each 3 - 5)
3	5 - 8
4	7 - 9
5	9 - 11
6	11 - 13