If your firm is unable to pass firm’s peer review, this may risk your firm to a possible termination from the peer review program. If your firm is terminated from the peer review program, the firm cannot continue to offer certain professional services to the public including issuing reports purported to be in accordance with AICPA Professional Standards. In addition, your firm’s name will be published publicly in Peer Review Firm Drops and Firm Terminations website.
Review of peer review firm drops and firm terminations data for the years 2021 through July 2023 below, shows that the number of firms being dropped from the peer review program is increasing.
Peer Review Firm Terminations
2021 2022 2023*
34 50 40
* As of July 2023
Source: Peer Review Firm Drops and Firm Terminations
The good news is that your firm can pass the peer review by implementing the following 6 steps:
- Appoint peer review champion in your firm.
- Train your peer review champion in AICPA peer review program requirements.
- Have you champion participate in peer reviews for other firms as a peer reviewer with a frequency of not less than 5 peer reviews per year.
- For the firm’s practices arears, train frequently all your staff on peer review program requirements.
- Create a peer review checklist to be completed and signed off for each engagement as part of engagement documentation and file lock done process.
- If your firm has been terminated from the peer review program, consider re-enrolling in the program.
Once your firm has been terminated, the firm can still re-enroll in the program. After meeting certain conditions.
If you have any questions of how to implement the above 6 steps to pass firm’s peer review, contact us at info@bmk360cpa.com or visit us at www.bmk360cpa.com
