AICPA Peer Review Board Approves Clarified Peer Review Standards
The AICPA Peer Review Board (PRB) recently approved Clarified AICPA Standards for Performing and Reporting on Peer Reviews, effective for peer reviews beginning on or after May 1, 2022.
The PRB stated that it believes the clarified standards will make peer review guidance easier to read, understand and apply. The final standards will include the following changes:
- Most procedures in a system review will not be required to be performed at the firm's office. The extent of procedures will be decided by assessing peer review risk. The number of office visits will also be determined by assessing peer review risk.
- A surprise engagement selection will not be required but still may be selected based on peer review risk.
- The term "significant deficiencies" will be eliminated in fail reports on engagement reviews. Under the clarified guidance, fail reports on engagement reviews will refer to only "deficiencies."
- Administering entities may adopt policies to include peer review documents for single audit engagements in Report Acceptance Body meetings materials, but this will not be required.
- Guidance for performing and reporting on quality control materials reviews will no longer be included. Quality control materials providers may opt to have an examination of the materials conducted in accordance with AICPA attestation standards.
The final standards will be published in the April update to the Peer Review Program Manual and made available on the AICPA Peer Review website. Early implementation of the final standards is not permitted.
For more information, see the draft of the clarified standards in the PRB's February open session materials.