AICPA Proposes Changes to Clarify Performing and Reporting on Peer Reviews
Significant Proposed Amendments
The Exposure Draft also includes other significant proposals to amend the extant peer review guidance, particularly the elimination of certain existing requirements and definitions:
- That the majority of procedures in a system review be performed in the reviewed firm’s office;
- For surprise engagements in system reviews;
- The term “significant deficiency” in engagement reviews;
- That peer review documents for single audit engagements be included in materials for Review Acceptance Body (RAB) meetings; and
- Guidance on performing and reporting on reviews of quality control materials as an option;
In addition, the Exposure Draft proposes amendments to the requirements for onsite office visits in system reviews.
If adopted as final by the Peer Review Board, the final standards are expected to be effective for reviews commencing on or after May 1, 2022. However, given the “interdependence of stakeholder groups involved in the report acceptance process,” the Peer Review Board is not recommending that early implementation be permitted.
The AICPA has also published a comment letter template for responding to the Exposure Draft.
The Exposure Draft and the comment letter template are available on CCH Accounting Research Manager.
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