Public accounting firms that perform accounting and audit services generally must undergo a peer review once every three years.
This required practice monitoring allows firms and practitioners to maintain their professional licenses with the state board of accountancy and be a member in good standing of the American Institute of Certified Public Accountants, should they choose to do so.
There are two types of peer review engagements: Systems Reviews and Engagement Reviews. Further, there are three ways to engage a peer reviewer: Firm-on-Firm Review; Association Review; and CART (Committee-Appointed Review Team) for engagement reviews only.
Councilor, Buchanan & Mitchell (CBM) can provide a firm-on-firm peer review team to perform both Systems Reviews and Engagements Reviews. We have been approved to conduct reviews for firms that perform:
A firm undergoing a peer review should consider the following when selecting a peer reviewer:
Does the peer reviewer have the experience to be approved to review your firm?
How many peer reviews does the firm perform?
What other possible practice management/value-added service can the reviewer provide?
CBM’s professionals look forward to working with firms and sharing our depth of knowledge. The best-case scenario for a firm under review is to receive a pass peer review report with no findings. We find, however, that all firms can generally benefit from constructive guidance and discussion to help a firm update or improve its audit and accounting processes.
While your firm may have relied on the same firm for years for delivery of an effective engagement or system review, in this environment of increased scrutiny, it is essential that you know your reviewer delivers high-quality service and has the experience and qualifications to do the best job possible.