AICPA Grants Extension for Peer Reviews
The AICPA Peer Review Board (PRB) has voted to grant CPA firms a six-month extension for peer reviews, corrective actions, and implementation plans with original due dates between Jan. 1, 2020 and Sept. 30, 2020.
The extension was granted due to the effects of the COVID-19 pandemic and will be granted automatically in the PRIMA operating system by the end of May. Peer review due date and corrective action due date extension letters will be uploaded in Facilitated State Board Access if the firm gave permission. Firms will also be sent letters reminding them to be familiar with the regulations and requirements of their state board of accountancy.
Despite the extended due dates, firms are not required to use the extension – and are encouraged to have their reviews performed as soon as they are able.
The PRB and AICPA Peer Review Program staff will continue to monitor the pandemic and will evaluate whether automatic extensions are appropriate for firms with due dates after Sept. 30, 2020.
The AICPA has provided four examples for how due dates will change:
Example 1: Firm undergoing peer review
Original due date: March 31, 2020
Extended due date: May 31, 2020
New due date: Sept. 30, 2020 (six months from original due date)
Example 2: Firm undergoing peer review
Original due date: Nov. 30, 2019
Extended due date: Feb. 29, 2020
New due date: Feb. 29, 2020 (no change as firm’s original due date was in 2019)
Example 3: Firm required to complete a corrective action plan
Original due date: Feb. 29, 2020
Extended due date: April 30, 2020
New due date: Aug. 31, 2020 (six months from original due date)
Example 4: Firm required to complete a corrective action plan
Original due date: Sept. 30, 2020 (established by Report Acceptance Body (RAB) at June 1, 2020 meeting)
Extended due date: To be determined. (RAB established the due date after the PRB approved automatic extensions. At each meeting after PRB approval for the duration of the pandemic, RABs should consider whether an additional extension is warranted and grant it at that time.)
If you have questions about your firm’s peer review due date, please contact the TSCPA office or email peerreview@tscpa.com.