Peer Review Guide

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Peer Review Guide > What's New in Peer Review > Peer Review Developments from 2005

Peer Review Developments from 2005

2005

Revised Peer Review Standards Effective January 1, 2005 (January 2005)

Interpretations to Peer Review Standards (as of January 1, 2005)

 


Revised Peer Review Standards Become Effective (January 2005)

In 1998, the AICPA Peer Review Board began a two-phase reevaluation process of the validity and objectives of the AICPA Peer Review program (PRP) to ensure the program was continuing to enhance the quality of accounting and auditing practices of public accounting firms. The Board recognized that protecting the public interest was an equally important objective of the PRP. Phase I of the process was completed in 1999. Among other changes to the Peer Review Standards that became effective in 2001, this phase created the current three-tiered approach to peer review consisting of system, engagement and report reviews.

Phase II began in 2001. The Board’s goal was to reevaluate and analyze the objectives, performance, reporting, transparency, administration and overall effectiveness of system reviews to determine whether they were still relevant, efficient, modern and valid. Among the factors that the Task Force considered were changing regulatory and practice environments. The Board solicited comments from the National Association of State Boards of Accountancy, state boards of accountancy, U.S. General Accounting Office, Department of Labor, reviewers, administrators and other interested parties.

In 2003, the Board issued an exposure draft (ED) on revised standards. Later that year, after taking into account written responses to the ED, the Board approved the final standards. These standards and new interpretations were issued in 2004 and are effective for peer reviews commencing on or after January 1, 2005. The 2004 revisions encompass the following nine areas:

  • Increased transparency in reporting on peer reviews
  • Performance of system reviews
  • Reviewed firm representations
  • Boards of accountancy and other regulatory bodies’ rules and regulations
  • Three-year peer review cycle
  • Team captain and team member qualifications
  • Technical reviewer and committee member qualifications
  • Enhanced oversight
  • Administration

Peer Review Guide > > What's New in Peer Review > Peer Review Developments from 2005


Copyright © 1997-2002, Duane Reyhl, CPA
E-mail: dreyhl@reyhl.com

Updated: February 5, 2006