How to Prepare for a CPA Peer Review - Part 4: Select and Schedule the Reviewer

Peer Review Guide

Peer Review Guide > How to Prepare for a Peer Review > Select and Schedule the Reviewer

How to Prepare for a CPA Peer Review
Part 4: Select and Schedule the Reviewer
With the exception of step 6 below, this section of the timeline applies to all firms regardless of the type of review. This portion of the review cycle should take place about six to nine months prior to the due date of the review. Although it is preferable to have identified your review prior to completing your scheduling form, this phase may be completed in conjunction with preparing that form.

For a CART review (CPA Society selects the peer reviewer):
- Note: This method only applies to engagement and report reviews.
- Approve or decline the reviewer selected by your administering entity.
- Return the signed engagement letter.
- Note the estimated range of time to perform the review.
For a firm-on-firm review (firm selects its peer reviewer):
- Interview potential reviewers, through a request for proposal or telephone interview, taking into account:
  - The reviewer's recent experience in the types of engagements conducted by your firm.
  - The similarity of the reviewer’s firm to your firm
  - The number of reviews the reviewer has performed.
  - The reviewer's experience with reviews of firms similar to yours.
  - Material the reviewer can provide to help you prepare for the review
  - Whether the team captain will be conducting the exit conference.
  - References available from other firms.
  - Your rapport with the prospective reviewer, taking into account such things as communication style.
  - Similarity of communication style between you and the reviewer.
- Consider the cost of the review
  - The direct cost of a system review for an average firm will vary between depending on the size and nature of your firm’s accounting and auditing practice.
  - The cost of an engagement review can range from $400 to $900, depending on the size of firm's practice and the number of owners responsible for the issuance of review, compilation and attestation engagement reports.
  - The cost of report reviews are generally less than $400.
  - In addition to the actual peer review cost incurred every three years, firms may also pay an annual administrative fee to their CPA society (or applicable administering entity) to cover the costs of running the program. In some states, in the review year, fees for scheduling the review and evaluating the results of the review may also apply.
  - See common budgets system, engagement, and report reviews.
- Make your final reviewer selection.
- Send the information form about the reviewer's firm to your peer review administering entity for approval.
- Receive an engagement letter for your reviewer.
- Review and sign the engagement letter for the review and return it to the reviewer.
Arrange a date to start the review.
Schedule appropriate supervisory and engagement personnel to be available during the review.
Prepare a list of names, positions and years of experience of your firm's personnel.

Arrange lodging and transportation accommodations, if necessary, for your reviewer.

Next: Part 5 - Just Before the Review Starts

Peer Review Guide > How to Prepare for a Peer Review > Select and Schedule Your Reviewer