Section I: About Peer Review (PR)

Section II: PR Standards, Effective 1-1-09

Section III: Guidance on PR Standards

Section IV: Government Auditing Standards

Section V: SQCS No. 7

Section VI: About Peer Reviewers

Section VII: Recent Professional Standards Developments

Section VIII: Pre-2009 Peer Review Guidance

Section IX: AICPA Oversight of NYSSCPA PR Program Administration

Section X: Conferences, Seminars and Peer Review Training Materials

Section XI: Facilitated State Board Access

Section I: About Peer Review

This section provides an overview of peer review and is also designed to assist inexperienced reviewers and firms who are considering initiating a peer review practice in evaluating the benefits and costs and requirements of this specialized practice segment. Additionally, it provides experienced reviewers with marketing materials and ideas to expand their existing peer review practice.

A. Practice Management Tool Kits for Peer Reviewers
B. Practitioners Tool Kit for Peer Reviewers
C. Peer Review Questions & Answers Booklet
D. Reviewers Who Perform Reviews in Accordance With the AICPA’s PRP
E. Why Become a Peer Reviewer
F. How to Become a Peer Reviewer
G. Enrollment Form
H. Peer Review: An Emerging Niche Market (The CPA Journal, July 2008)
I. Introducing the New Principles-Based Peer Review Standards (The Journal of Accountancy, May 2009)
J. 2009 Oversight Report

Section II: Peer Review Standards Effective January 1, 2009 and Related Information

The links contained in this section contain materials which reviewers utilize in the conduct of peer reviews commencing on or after January 1, 2009. The last three subsections beginning with the link to the “White Paper” (subsection K) should be consulted if reviewers need clarification or background information on the 2009 revisions.

A. AICPA Peer Review Manual, effective for reviews commencing on or after January 1, 2009
B. 2009 Team Captain Packages
C. System Review Team Captain Materials
D. Engagement/Report Review Reviewer Package
E. 10 Steps to Performing an Efficient Review of an Audit Engagement
F. 2009 Peer Reviews: Update No. 9 January 2009- Peer Review Questions and Answers
G. PRP Section 4950: Instructions for Use of Matter for Further Consideration (MFC) Forms for System Reviews
H. PRP Section 4960: Instructions for Use of Findings for Further Consideration (FFC) Forms for System Reviews
I. PRP Section 6500: Instructions for Use of Matter for Further Consideration (MFC) Forms for Engagement Reviews
J. PRP Section 6600: Instructions for Use of Findings for Further Consideration (FFC) Forms for Engagement Reviews
K. White Paper—Navigating Through the Revised Standards
L. Transition Guidance on CPE for New Peer Review Standards Effective January 1, 2009
M. Revised Standards for Performing and Reporting on Peer Reviews

Section III: Peer Review Standards: Guidance and related matters

This section includes guidance in addition to that provided by peer review interpretations and the Standards themselves, and forms part of the body of the AICPA’s peer review technical rules.

A. Peer Reviewers' Alert

B. Peer Review Alert – April 2009

C. Peer Review Alert- June 2009

Section IV: Government Auditing Standards

A. A-133 Update

Section V: Statement on Quality Control Standard No. 7

SQCS No. 7 supersedes SQCS’s No’s 2-6 (SQCS No. 2 superseded SQCS No. 1) and, accordingly, is the source of guidance from the Auditing Standards Board of the AICPA for an accounting firm’s responsibilities for a system of quality control, for its accounting and auditing practice, and also provides the meaning of certain terms used in SQCS’ in describing the professional requirements for firms and engagement partners. SQCS No. 7 should be read in conjunction with the Code of Professional Conduct.

A. Statement on Quality Control Standards No. 7, A Firm’s System of Quality Control

Section VI: Information about Peer Reviewers

A. Looking for a Reviewer? Search here.
B. Change in Experience Codes on Reviewer Resumes
C. Search for a Firm Enrolled in the AICPA Practice Monitoring Program (PRP)

Section VII: Recent Professional Standards Developments

This section contains links providing easy and quick access to articles discussing certain recent developments in professional standards (with an emphasis on Statements on Auditing Standards) which continue to receive attention in the financial press and professional news. Peer reviewers and reviewed firms can utilize this section for critical, analytical, and interpretive support during discussions and evaluation of matters arising during the review, such as the nature and extent of planning stage audit procedures (e.g., SAS 99, 104-111 articles), audit documentation standards (e.g., SAS 103 articles) and communication matters (e.g., SAS’s 112 and 114 articles). If you are interested in recently issued rulemaking exposure drafts from the Auditing Standards Board (ASB), Financial Accounting Standards Board (FASB), and the Government Accountability Office (GAO), please visit the Exposure Drafts section under Professional Resources of the NYSSCPA website.

*Note: This section is not intended to and should not be relied upon as a substitute for the SAS’s or other original authoritative literature issued by rule making bodies covered in the articles and other materials.

A. FASB Votes to Delay Effective Date of FIN 48 for Nonpublic Entities (November 2007)
B. SAS 112 Guidance
C. Conference Call on SAS 112
D. SAS 112
E. SAS 112 Toolkit
F. Understanding SAS No. 112
G. SAS Nos. 104-111 Toolkit
H. SAS 104-111 (Adobe Acrobat required)
I. AICPA Powerpoint on SAS 104-111
J. Revisions to Interpretation 101-3 Performance of Nonattest Services
K. FASB Interpretation 48
L. FASB Interpretation 48 (AICPA)
M. Practice Guide on Accounting for Uncertain Tax Positions Under FIN 48
N. FAQ About FIN 48
O. FIN 48 From Different Perspectives
P. To Consolidate or Not: For Some Companies, That IS the Question (The Journal of Accountancy, December 2005)
Q. Consolidation of Variable-Interest Entities: Applying the Provisions of FIN 46(R) (The CPA Journal, August 2006)
R. Public Company Accounting Oversight Board Proposes New Auditing Standard: Engagement Quality Review
S. Yellow Book: The Gold Standard: Working Toward Better Government Audits in New York State (The CPA Journal, May 2008)
T. The Challenges of Transparency in Corporate Tax Departments: What Will the New Audit Documentation Requirements and FIN 48 Reveal to the IRS? (The CPA Journal, October 2007)
U. Implementing the New ASB Risk Assessment Audit Standards (The CPA Journal, June 2007)
V. Auditors’ Responsibilities Formalized Under SAS 109: Understanding Risks Associated with the Legal and Regulatory Environment (The CPA Journal, February 2007)
W. Technology Changes the Form and Competence of Audit Evidence (The CPA Journal, January 2007)
X. CPAs’ Perceptions of the Impact of SAS 99 (The CPA Journal, June 2005)
Y. Introducing the New Principles-Based Peer Review Standards (The Journal of Accountancy, May 2009)

Section VIII: Pre-2009 Peer Reviews: Forms, Guidance, and other matters

A. 2008 Team Captain Packages
B. 2007 PEER REVIEW Engagement Checklists and Practice Aids
C. Uncertainties Created by FIN 48, Accounting for Uncertainty in Income Taxes (The CPA Journal, April 2007)
D. Q&A on the GAO's New Independence Standard
E. Leading the Way in Peer Review

Section IX: AICPA Oversight of the NYSSCPA Administration of the Peer Review Program

Introduction

The AICPA Peer Review Board (board) is the senior committee governing the AICPA Peer Review Program (program). This includes overseeing and coordinating the activities of state CPA societies (hereinafter, administering entity) approved by the board to administer peer reviews.

The main objectives of the board oversight program are to provide reasonable assurance that: (1)
the participating administering entities are complying with the administrative procedures
established by the board as set forth in the AICPA Peer Review Program Administrative Manual;
(2) reviews are being conducted and reported upon in accordance with the standards; (3) results
of reviews are being evaluated on a consistent basis in all jurisdictions; (4) and information
provided to firms and reviewers (via the Internet or other media) by administering entities is
accurate and timely.

A. AICPA Report on 2008 Oversight of NYSSCPA
B. NYSSCPA Letter of Response to 2008 AICPA Oversight Report
C. AICPA Oversight Acceptance Letter of NYSSCPA

Section X: Conferences, Seminars and Peer Review Training Materials

A. AICPA 2009 Peer Review Conference

Section XI: Facilitated State Board Access

AICPA Launches Facilitated State Board Access Program

New York State Society of CPAs is participating in the AICPA Peer Review Facilitated State Board Access (FSBA).

What is Facilitated State Board Access?

This new AICPA program uses the existing peer review process to facilitate the voluntary disclosure of peer review results to state boards of accountancy (BOAs).

How Will Facilitated State Board Access Benefit My Firm?

The goal of this new process is to create a nationally uniform system through which CPA firms can satisfy state board peer review information submission requirements, increase transparency, and retain control over their peer review results. In New York, the new accountancy law that was passed in 2009 will make peer review (quality review) mandatory. However, since that part of the law in not effective until 2012, the New York peer review administrators will focus on the part of the process that will allow submission of peer review results to other BOAs as specifically requested by the firm. This new process is expected to help make submission of your firm’s peer review information to other BOAs easier. The process and any other requirements under the New York law will be evaluated as 2012 approaches.

What This Means for Your Firm

This new process uses the existing peer review process to facilitate the voluntary disclosure of peer review results to BOAs. Firms to which the process will be applicable will receive a notice of these changes once participation begins for New York firms on or after the July 20, 2009 RAB meeting.

When Will Facilitated State Board Access Be Implemented?

Six states participated in the pilot from October 2007 to March 2008. Another 10 states participated in early adoption from May 2008 to December 2008. Full national implementation will occur throughout 2009 in connection with the acceptance of new peer review reports issued under the revised AICPA Standards for Performing and Reporting on Peer Reviews.

How Will This New Process Work?

FSBA uses an opt-in process that allows peer review results to be made available to select BOAs on a voluntary firm basis, using a secure BOA web site available only to authorized state board representatives. Beginning with reviews accepted on or after the July 20, 2009 RAB meeting, firms with their main office located in New York will receive an additional letter with their firm’s peer review acceptance letter informing them that they can request the New York State Society of CPAs to post their peer review results to a secure BOA web site with access given to select BOAs that require peer review and are not prohibited from accessing the results. For firms whose main office is located in New York, the peer review AE is the New York State Society of CPAs. Firms that are not members of the AICPA Employee Benefit Plan Audit Quality Center (EBPAQC), Governmental Audit Quality Center (GAQC) or Private Companies Practice Section (PCPS) will also be given the opportunity to select additional BOAs for expanded access. Below are the details of how the new process will work.

In New York, the process will entail:

• Receiving an additional letter with your firm’s peer review acceptance letter informing you that you can request the New York State Society of CPAs to post your firm’s peer review results to a secure BOA web site with access given to specific BOAs that require peer review and are permitted access to peer review information.
• To have your peer review results posted for access by other BOAs, you must return the communication to the New York State Society of CPAs with specific instructions. You can request that your results be made available to more than one BOA, as long as the BOAs require peer review and are not prohibited from obtaining access to peer review information. Access will be limited only to those BOAs that are participating. It is anticipated that this option will be beneficial to firms, over time, with multi-state practices.

Firms will be notified by the New York State Society of CPAs when the BOA(s) that they have selected for expanded access are participating in FSBA. This notification will remind firms of their selection and provide them with the opportunity to change their decision regarding expanded access.

What Documents Will Be Posted Under This Process?

For firms that choose to provide access to one or more eligible BOAs, the following documents will be posted, as applicable, to the secure BOA web site for access only by authorized state board representatives. The number of documents posted to the secure BOA web site for a firm may vary based upon the results of the peer review. A firm will not choose which documents will be posted as each of those that are applicable (based on the results of the review) will be posted.

The following documents will be posted to the secure BOA web site, as applicable:

• Peer review report
• Letter of comments
• Letter of response
• Acceptance letter
• Letter(s) signed by the reviewed firm indicating that the peer review documents have been accepted with the understanding that the reviewed firm agrees to take certain actions
• Letter notifying the reviewed firm or individual that certain required actions have been completed

Firms that choose to expand access to other eligible BOAs may change their mind even after their information has been posted by notifying the New York State Society of CPAs in writing. Once the New York State Society of CPAs has been notified, the information will be removed from the web site, however, certain information (which is currently publicly available) will remain posted to the secure BOA web site.

This information will help us to maintain a complete database of all firms in the peer review program. The information that will be posted even if a firm does not select BOAs for expanded access is as follows:

• Firm’s name and address
• Firm’s enrollment in the Peer Review Program
• The date of acceptance and the period covered by the firm’s most recently accepted peer review
• Whether the firm’s enrollment in the program was terminated or dropped.

Q&A on Facilitated State Board Access

Click here for a list of frequently asked questions regarding the Facilitated State Board Access.

For Additional Information or Questions

Please contact the NYSSCPA Peer Review staff at 212-719-8300 or by visiting the AICPA website at http://www.aicpa.org/Professional+Resources/Peer+Review.