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Cowboy country,
Arizona grasslands and mountains in the background |
Following are frequently asked questions about the peer review process:
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Is my firm subject to a peer review?
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Pursuant to A.A.C. R4-1-454, all firms performing restricted financial services
(A.R.S. § 32-701(16)) or full-disclosure compilation services will need to complete a
peer review within the three years immediately preceding the firm's registration
renewal deadline. Services subject to peer review include, but are not limited to:
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Audits of historical or prospective financial statements
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Reviews of historical or prospective financial statements
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Full-disclosure compilations of historical or prospective financial statements
Definition of Restricted Financial Services
A.R.S. § 32-701(16) defines “restricted financial services" as the following services rendered
by the holder of a certificate issued by the Board:
(a) Audits or other engagements performed in accordance with the statements on auditing
standards adopted by the American institute of certified public accountants.
(b) Reviews of financial statements performed in accordance with the statements on
standards for accounting and review services adopted by the American institute of
certified public accountants.
(c) Attestation engagements performed in accordance with the statements on standards for
attestation engagements adopted by the American institute of certified public
accountants.
(d) The preparation and issuance of audit reports as required by the Sarbanes-Oxley act
of 2002 (P.L. 107-204; 116 Stat. 745) or the rules of the Securities and Exchange
Commission.
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What if my firm only provides non-disclosure compilation services?
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Our forms are in Adobe Acrobat (pdf) format. You will need Adobe Acrobat Reader
installed on your computer to view and print these forms. Click the Adobe logo to download
a free version of Adobe Acrobat Reader.
Some forms allow you to fill them out on-screen and print them, however, you cannot save
them. It will be necessary to fill the form out each time it is opened.
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Pursuant to A.A.C. R4-1-454(B), if the only services performed by a firm involving financial
statements are non-disclosure compilation services (not subject to peer review), the Board
shall request, on a random basis, that the firm provide documentation to the Board, which
will enable the Peer Review Oversight Advisory Committee to conduct an educational
enhancement review.
The Peer Review Oversight Advisory Committee (PROAC) has published the following Matters
for Further Consideration (MFC) list in an attempt to assist firms subject to an
Educational Enhancement Review (EER) . The MFC list addresses the most common findings
discovered by PROAC during the EER and is broken down into four categories:
Reporting, Presentation, Scope and SSARS No. 8.
Matters for Further Consideration (MFC) list |
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What do I do if this is my firm’s first peer review?
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If a firm accepts its first engagement, which will require the firm to complete a
peer review, pursuant to A.A.C. R4-1-454(I)(2)(b):
- The firm must notify the Board within 90 days after accepting a restricted
financial service or full-disclosure compilation service;
- The firm will undergo a peer review within 18 months from the year end of the
engagement accepted (for example, if the engagement’s year end is 12/31/08, the
firm must undergo a peer review by 6/30/2010).
If this is your firm’s first time registering for peer review, contact the California
Society of CPAs (CSCPA) at 1 (800) 922-5272, extension 2, to register. After
registering with CSCPA, they will provide you with a list of peer reviewers. The Board
does not provide a list of reviewers. |
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How do I request a peer review exemption for my firm?
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Pursuant to A.A.C. R4-1-454(I), a CPA firm is exempt from the requirements of peer review
if the firm submits to the Board written verification that it meets at least one of the
exemption requirements. The following link to the affidavit is to be used to meet this
requirement.
Peer Review Exemption Affidavit |
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How will the new peer review process affect Arizona CPAs?
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The Arizona Society of Certified Public Accountants published in their November 2009 AZCPA
issue that CPAs will continue to use the current peer review process until the State Board
of Accountancy takes action and the law changes.
The Facilitated State Board Access (FSBA) is a new process that will address the demand
for greater peer review transparency. This is a program that the American Institute of
CPAs (AICPA) has created to help the profession keep up with the evolving changes in the
business and regulatory environments.
Business Article |
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