What is Peer Review?
Peer review sets CPAs apart from other professions and shows their dedication to upholding the standards of the profession.
The South Carolina Board of Accountancy (SC BOA) requires firms that perform audits, reviews, compilations and/or attest service engagements to be enrolled in a peer review program.
The SC BOA has adopted the model used by The American Institute of Certified Public Accountants (AICPA). Firms that perform attest services are required to undergo a peer review every three years.
A peer review is a periodic external review of a firm’s quality control system in accounting and auditing and is also known as the AICPA’s practice monitoring program. AICPA members and SC firms engaged in the practice of public accounting are required to practice in a firm that is enrolled in an approved practice-monitoring program such as the Peer Review Program.
The program is designed to be educational for firms in public accounting to further enhance the quality in their performance of accounting and auditing work. The program also allows for firms to communicate with their fellow peers on the objectives of the accounting profession.
Mandatory Peer Review
Regulation 1-09. Peer Review of the Board of Accountancy requires, as a condition of firm registration and/or renewal (including those firms registered in other jurisdictions operating in this state under practice privilege), a licensed firm providing any of the following services to the public shall enroll in a qualified peer review program:
- Audits;
- Reviews of financial statement;
- Compilations of financial statements;
- Examinations of prospective financial statements;
- Compilations of prospective financial statements;
- Agreed-upon procedures of prospective financial statements;
- Examinations of written assertions;
- and Agreed-upon procedures of written assertions.
Peer Review Information
Peer review is an important aspect of the profession’s ongoing commitment to maintaining the highest standards in accounting practices. Over the years, SCACPA members have benefitted from significant discounts on peer review fees. However, you may have noticed an apparent price increase due to factors such as inflation and the expiration of these discounts. It’s crucial to understand that this change is not a source of profit for our organization or the Peer Review Alliance. Rather, it reflects the essential costs of maintaining this vital program.
The Peer Review Alliance plays a critical role as an extension of the AICPA’s broader peer review efforts. Serving firms in Illinois, Indiana, Iowa, Kentucky, South Carolina, West Virginia, and Wisconsin, the Alliance is instrumental in ensuring that firms outside the direct purview of the AICPA still receive thorough and effective peer reviews. This program helps firms and individuals find qualified peer reviewers and aids in scheduling and guiding through the review process.
Peer review is more than a regulatory requirement; it is a cornerstone of public trust in our profession. It ensures that each firm adheres to the highest quality control standards, safeguarding the public and enhancing the credibility and integrity of our practice. While we understand that fee adjustments can be challenging, they are necessary to uphold the quality and rigor of the peer review process, reinforcing our commitment to excellence and public protection. As CPAs, engaging in this program is a testament to our dedication to upholding the principles that define our profession.
Peer Review Administration
Effective Aug. 1, 2016, the SCACPA Board of Directors has outsourced the administration of the peer review program for SC firms to the Peer Review Alliance.
Contact Information
If you have questions regarding enrollment or scheduling, please contact:
- Michele Courtney at 312-517-7644 or courtneym@icpas.org
If you have questions regarding technical issues, please contact:
- Heather Lindquist at 312-517-7624 or lindquisth@icpas.org.
You may also contact:
- AICPA Peer Review guidance at 919-402-4502 or prsupport@aicpa.org
- The SC Board of Accountancy at 803-896-4770 or Contact.Accountancy@llr.sc.gov
For more information regarding the Peer Review Program, please visit the Peer Review Alliance website at www.icpas.org/advocacy/peer-review.