how to prepare for an aicpa peer review
how to prepare for an aicpa peer review
Preparing for an AICPA peer review begins long before the review year. A well‑organized practice—supported by current quality management documentation, complete engagement files, and consistent monitoring—helps ensure a smooth, efficient, and constructive review. Preparation applies whether your firm is undergoing a System Review or an Engagement Review.
Review Your Quality Management Documentation
Ensure your firm’s system of quality management is documented, current, and reflective of how your firm actually operates. This includes:
Quality objectives, identified risks to quality, and the responses designed to address those risks
Methodologies, tools, templates, and policies your teams actually use
Evidence that the system has been implemented and is operating
Monitoring procedures and how results are evaluated and remediated
organize prior peer review materials
From your most recent AICPA Peer Review, gather:
The most recent peer review report and acceptance letter
Any Letter of Comments and your firm response
Required corrective actions or implementation plans, with proof they were completed
Any follow‑up correspondence related to those actions
PRIMA or administering‑entity correspondence (scheduling, due dates, communications)
Internal inspection/monitoring results since the last review and evidence of remediation
If applicable: methodology changes, template updates, library updates, and CPE completed to remediate prior issues
If your prior review had no findings, still keep the report and acceptance letter readily available and be prepared to show ongoing monitoring since that review. The reviewer conducts a file‑based evaluation of the engagements selected; the firm’s overall system of quality management is not evaluated in an Engagement Review.
Confirm Independence and Ethical Requirements
Ensure independence and ethics documentation is complete and up‑to‑date:
Annual independence confirmations
Threats and safeguards analysis where applicable
Evidence that independence was considered at acceptance and throughout the engagement
Verify CPE and Competency Requirements
Confirm that personnel performing and supervising engagements have completed role‑appropriate CPE, including industry‑specific learning where relevant. Reviewers will look for CPE by individual and its relevance to the engagements performed.
Prepare Engagement Files for Reviewer Selection
Engagement selection is risk‑based and representative of your practice, and may include work across industries, partners, and, when applicable, offices. Prepare:
Complete workpapers supporting planning, procedures, and conclusions
Signed engagement letters and required communications
Accountant’s reports (SSARS) or auditor’s reports (audit engagements)
Financial statements and required disclosures
Documentation of supervision, review, and use of firm methodologies
Any engagement‑specific checklists or tools used
For System Reviews, files demonstrate how your system operates in practice. For Engagement Reviews, files are the primary basis for the reviewer’s evaluation.
Review Monitoring and Internal Inspection Activities
Gather documentation that shows how your firm monitors engagement quality and the system overall:
Internal inspections or monitoring reports
Identified issues and root‑cause analysis
Corrective actions and follow‑up procedures
Evidence that monitoring is performed consistently
Coordinate Early and Set a Practical Timeline
Peer reviews run smoother when you schedule early and work backward from your due date. Before the review begins:
Confirm the review type (System or Engagement) and schedule your reviewer
Align internal roles and responsibilities
Verify access to workpapers, quality management documentation, and firm library resources
Centralize documents in a secure location and designate a single point of contact
Make sure your internal team understands the PBC list and deadlines
Reviewer PBC Essentials
Prior peer review report and acceptance letter
Letter of Comments, firm response, and corrective action evidence (if any)
Monitoring/inspection results and remediation since the last review
Independence confirmations and annual ethics documentation
CPE records (by role; include industry-specific where relevant)
Quality management documentation (objectives, risks, responses; implementation and operation evidence)
Methodology/library resources (current checklists, forms, guidance)
Engagement files likely to be selected (letters, reports, workpapers, financial statements/disclosures)
Explore more Peer Review resources
AICPA Peer Review (main) • What Is an System Review? • What Is an Engagement Review? • Common Peer Review Findings