California requires every licensed CPA firm that performs accounting and auditing services to undergo a peer review – and SingerLewak has the experience to conduct yours.
What Is a Peer Review?
A peer review is an independent evaluation of your firm’s accounting and auditing practice, performed by an unaffiliated reviewer under a Board-recognized program.
Depending on your firm’s practice, your review will be one of two types:
System Review
Evaluates your firm’s quality control or quality management system and includes testing of selected engagements. This type results in an opinion on your system as a whole.
Engagement Review
Evaluates selected engagements only, without rendering an opinion on your firm’s quality control system.
Who Is Required to Have One?
Any US – licensed firm – including sole proprietorships – that performs services under any of the following standards:
• Statements on Auditing Standards (SAS)
• Statements on Standards for Accounting and Review Services (SSARS)
• Statements on Standards on Attestation Engagements (SSAE)
• Government Auditing Standards (Yellow Book)
• Audits of non-SEC issuers performed under PCAOB standards
• Service organizations (SOC 2 Reports)
• Benefit Plans, including Defined Contribution Plans, Defined Benefit Plans, and ERISA Health & Welfare Plans
How Often?
Firms must undergo a peer review at least once every three years. A firm’s initial peer review is typically required within 18 months of performing its first accounting and auditing engagement.
Why It Matters
Peer review does more than satisfy a regulatory requirement – it strengthens your practice.
Quality
Professional standards continue to evolve. Peer review helps your firm stay aligned with those standards and deliver work products that meet the profession’s requirements.
Knowledge
A peer review is an educational opportunity. Firms often come away with new techniques and best practices that improve the quality of services they provide to clients.
Trust
In a competitive market, successfully completing a peer review signals to clients that your firm meets the profession’s standards – and that they can trust the work you do.
The Peer Review Process in California
The California Board of Accountancy (CBA) recognizes the AICPA to administer peer reviews in California. The California Society of CPAs (CalCPA) administers the AICPA Peer Review Program locally.
Firms enroll and manage their review through PRIMA (Peer Review Integrated Management Application), the AICPA’s secure online platform. At renewal, all firms must report peer review results to the CBA using the Peer Review Reporting Form (PR-1). Firms that receive a failed review rating must submit results to the CBA within 45 days.
Work With SingerLewak
SingerLewak’s professionals are qualified peer reviewers with deep knowledge of the standards that govern your practice. We bring a constructive, collegial approach – our goal is to help your firm come through the process stronger.
Ready to schedule your peer review? Contact us to get started.
