Rule proposed to address peer review deficiencies, failures

After much deliberation between The Ohio Society and the Accountancy Board of Ohio (ABO), a rule has been filed to increase and speed up transparency for firms with adverse peer review results or certain other deficiencies, thereby providing the public with additional protections.

If adopted by the Joint Committee on Agency Rule Review (JCARR), all firms receiving the following peer review reports must submit the report, and any applicable letters of comment, letters of response and peer review:

• An adverse (fail) peer review report
• A modified (pass with deficiencies) peer review or report review that contains one or more deficiencies concerning  professional standards  that are deemed by the Peer Review Committee to be significant and continuing from the firm’s previous peer review or report review
• A second consecutive modified (pass with deficiencies) peer review report

Firms falling into any of these categories must submit the required documentation to the ABO within 30 days of receipt of a peer review acceptance letter issued by the Peer Review Committee.

The Society supported the proposed rule in general and is pleased the ABO agreed that the initial peer review, unless egregious problems are found, should remain educational in nature. The Society continues to have concerns about resting interpretation of what should be considered a “significant and continuing” deficiency with the Peer Review Committee.

Should the rule be approved by JCARR as expected, it will take effect in mid-July. For additional information on this issue, contact Lisa Brown.

Peer Review Resources

Back to Peer Review home page