- What is peer review?
- Why must I have a peer review?
- Does my firm need to have a separate peer review for the AICPA, The Ohio Society and to meet the firm registration requirement with the Accountancy Board of Ohio?
- Who will administer my peer review?
- Are there extensions to the peer review process?
- What will happen if my firm does not "pass" peer review?
- Is my firm still required to have a System review, if it only does one small audit?
- How often must I have a peer review?
- Does my firm have to enroll in a practice monitoring program, if it does not perform any attestation engagements?
- Does my firm have to register with the Accountancy Board of Ohio?
- How does a small firm benefit from peer review?
- When should my firm's peer review be completed?
- How long does the review process take?
- Who is responsible for making sure the review team is qualified to perform my firm's peer review?
- What period will my peer review cover?
- When are the results of my firm's peer review final?
- Can I get the outcome of another firm's Peer Review?
- What fees are involved with the administration of a peer review?
- What will happen if I don't pay my Peer Review fees?
- What are the current fees for the in-house review program?
For a complete explanation of peer review, view the Peer Review resources on the Peer Review home page.
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It is a membership requirement for the AICPA and The Ohio Society, as well as Ohio state law. Your firm is required to have a peer review if it performs one or more attestation (audit, review or compilation) engagements.
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No, your firm is only required to have one peer review every three years. The Society is the administering entity for the AICPA and The Accountancy Board of Ohio. Therefore, one peer review is sufficient for all entities.
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The Ohio Society of CPAs administers all Ohio reviews for the AICPA, The Ohio Society and is the authorized agent for the Accountancy Board of Ohio (ABO). The Society and the ABO have adopted the AICPA Peer Review Program standards. Therefore, all reviews administered in Ohio are conducted in accordance with the AICPA Peer Review Program.
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Yes. If there is an extreme situation involving your firm, you may submit a request for an extension, in writing. The request needs to state the reason and the amount of time that you feel is adequate to have the review completed. The extension request will be reviewed and your firm will be notified whether or not the request was granted. However, your firm will need to keep in mind the following: being granted an extension does change the firm’s next peer review due date (it will remain on the three-year cycle) and NO extensions will be granted past your firm’s registration renewal deadline with the Accountancy Board of Ohio. If your firm would like to submit an extension request, send an e-mail to the peer review department at peerreview@ohio-cpa.com.
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The objective of the review is to help your firm improve the quality of its practice. If deficiencies are noted, your firm is expected to identify and take corrective measures to prevent the same types of deficiencies from recurring in the future. There are several actions that may occur if you have a poor review. The peer review committee will assign your firm some type of additional follow-up requirement(s) such as additional CPE, formal internal or external inspection, accelerated review, a post-issuance review, etc.
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Yes, your firm is required to have a System review if it performs any audits. However, Interpretation No. 1 to the current Standards (effective for peer reviews commencing on or after January 1, 2000) states that a system peer review can be performed at another location for a sole practitioner with four or fewer staff. This would still remain in effect. The revised Standards would allow an additional situation where the system review could be performed at another location when, irrespective of the size of the firm, the firm does not perform engagements covered by the SASs or examinations of prospective financial statements under the SSAEs.
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Your firm must have a peer review every three years.
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No, your firm is not required to enroll in a practice monitoring program, if it does not perform any attestation engagements.
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Yes, All firms in the state of Ohio engaged in the area of public accounting, along with licensees who hold the permit to practice, must register with the Accountancy Board of Ohio. If your firm does not perform any attestation engagements, it will be placed in an “exempt” group which is not required to have a peer review.
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Participation in the AICPA Peer Review Program provides a number of benefits to small firms:
- It provides the opportunity to learn new or improved ways to provide accounting and auditing services to clients.
- It keeps the firm's accounting and auditing personnel current on the latest standards and trends in accounting and auditing.
- It helps create a more level playing field for firms, making it easier for small firms to compete with larger firms.
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Your firm's review date is reflected on page one of the "Information Required for Scheduling Reviews" form. This is the date by which the review should be completed, that is, all review documents should be submitted to the peer review administrator. You should plan ahead so that the review takes place at a convenient time for your firm.
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The review process can take up to nine months to complete from the beginning of the scheduling process to the final acceptance. Make sure your firm plans accordingly.
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Ultimately, you are responsible for determining that the review team is qualified to perform your firm's peer review. However, the Society’s peer review department is responsible for ensuring that all the reviews it administers are performed in accordance with the Standards for Performing and Reporting on Peer Reviews. Therefore, your review should not take place until you and the reviewer have received written confirmation that the reviewer has been approved to conduct the review.
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The review normally covers a one-year period mutually agreed upon by you and the reviewer and should not change from review to review. It is recommended that a firm will keep the same peer review year-end from review to review. If the prior peer review year-end was not the most convenient for firm personnel or the most natural year-end for your firm’s practice, you can submit a written request to the peer review department for a permanent year-end change. Your letter should describe the reasons for your request. To send an e-mail to the peer review department.
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The results of your system, engagement and report reviews with significant matters are final when The Ohio Society's Peer Review Acceptance Committee reviews and accepts the report and, if applicable, the letter of comments (LOC) and the letter of response (LOR). This final step ensures that a panel of your peers agrees with your review team's conclusions. Committee members are required to excuse themselves from any discussion where there may be a conflict of interest with respect to the reviewed firm or the review team members. Technical reviewers accept the signed report letter on report reviews without any significant matters.
Your firm should not publicize the results of the review or distribute copies of the report until you have received written confirmation from the peer review committee that your review has been accepted.
It can take up to 90 days to process a system or engagement review for committee presentation once we receive the work papers from the reviewer. The process is somewhat shorter for report reviews it usually takes from 30 -60 days.
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Firms enrolled in the PCPS peer review program have chosen to have their firm’s peer review results placed in the public file which is accessible to anyone. Firms enrolled in the Peer Review program have chosen for their information to remain confidential. Therefore, the information is not accessible to anyone not administering the program. You do have the option to contact the firm directly and inquire as to whether or not they are willing to provide you with this information.
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Since, the peer review program is a self-supporting program, the Society has established an administrative fee and a scheduling and evaluation fee for all firms enrolled in the peer review program. These fees cover the administration of the program. The Society also has a seperate review fee for firms participating in the In-House Program.
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Firms that do not pay their outstanding peer review fees run the risk of having their Society and/or AICPA membership(s) terminated for non-cooperation with the peer review program. The firm could also have their firm and/or individual license revoked by the Accountancy Board of Ohio.
The Society will not process your firm’s next review until all outstanding fees from the prior review are paid in full. You must submit a copy of your firm’s final acceptance to the Accountancy Board of Ohio in order to renew your firm’s registration. The Accountancy Board will commence appropriate disciplinary action on firms that have not submitted the proper documentation.
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The in-house review program is based on 1.) the type of review that is performed on your firm (ie, report or engagement); 2) the number of engagements that the reviewer is required under the Standards to review. Report reviews begin at $625 which includes the review of one engagement. Each additional engagement reviewed is $75. Engagement reviews begin at $700 which includes the review of one engagement. Each additional engagement reviewed is $75.
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Peer Review Resources
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