Peer Review Expertise

Public accounting firms that perform accounting and audit services generally must undergo a peer review once every three years.

This required practice monitoring allows firms and practitioners to maintain their professional licenses with the state board of accountancy and be a member in good standing of the American Institute of Certified Public Accountants, should they choose to do so.

There are two types of peer review engagements:  Systems Reviews and Engagement Reviews.  Further, there are three ways to engage a peer reviewer: Firm-on-Firm Review; Association Review; and CART (Committee-Appointed Review Team) for engagement reviews only.

Councilor, Buchanan & Mitchell (CBM) can provide a firm-on-firm peer review team to perform both Systems Reviews and Engagements Reviews.  We have been approved to conduct reviews for firms that perform:

• Engagements subject to Government Auditing Standards (GAS)
• Audits subject to the Employment Retirement Income Security Act (ERISA)
• Examination engagements of service organizations with the insurance of a Service Organization Control (SOC) 1 or 2 report.
• Audits performed in accordance with Statements on Auditing Standards
• Engagements subject to Statements on Standards for Attestation Engagements (SSAEs)
• Engagements subject to Statements on Standards for Accounting and Review Services (SSARSs)

CBM’s peer reviewers are seasoned professionals with specialized knowledge in the automotive dealership, not-for-profit, government contracting and professional services industries. Team member Judith P. Barnhard, CPA, CFP®, CDFA® is a former member of the Maryland Association of CPAs Peer Review committee and Anthony A. Cuozzo, Jr., CPA is also a former chair and current member of the Coastal Peer Review committee.

What to Consider

A firm undergoing a peer review should consider the following when selecting a peer reviewer:

• Does the peer reviewer have the experience to be approved to review your firm?
• How many peer reviews does the firm perform?
• What other possible practice management/value-added service can the reviewer provide?

CBM’s professionals look forward to working with firms and sharing our depth of knowledge.  The best-case scenario for a firm under review is to receive a pass peer review report with no findings.  We find, however, that all firms can generally benefit from constructive guidance and discussion to help a firm update or improve its audit and accounting processes.

In the past few years, the AICPA has brought heightened oversight to its peer review program by closely monitoring peer reviewers to ensure the reviews they conduct are performed in accordance with the Peer Review Standards.  While some peer review firms have not withstood this close scrutiny, CBM continues to shine as a sought–after peer reviewer. Our firm is a long-time member of the AICPA Employee Benefit Plan Audit Quality Center, the Center for Audit Quality and the Governmental Audit Quality Center.

While your firm may have relied on the same firm for years for delivery of an effective engagement or system review, in this environment of increased scrutiny, it is essential that you know your reviewer delivers high-quality service and has the experience and qualifications to do the best job possible.

Contact CBM now to find out how we can help.