What is a Peer Review?
According to the AICPA:
- Firms (and individuals) enrolled in the AICPA Peer Review Program are required to have a peer review, once every three years, of their accounting and auditing practice related to non-Security and Exchange Commission (SEC) issuers covering a one-year period. The peer review is conducted by an independent evaluator, known as a peer reviewer. The AICPA oversees the program, and the review is administered by an entity approved by the AICPA to perform that role.
- The peer review helps to monitor a CPA firm’s accounting and auditing practice (practice monitoring). The goal of the practice monitoring, and the program itself, is to promote quality in the accounting and auditing services provided by the AICPA members and their CPA firms. This goal serves the public interest and enhances the significance of AICPA membership.
- There are two types of peer reviews: System Reviews and Engagement Reviews. System Reviews focus on a firm’s system of quality control, while Engagement Reviews focus on work performed on particular selected engagements. As noted in paragraphs 4 and 157 (PRP Section 1000 AICPA Standards for Performing and Reporting on Peer Reviews), a further description of System and Engagement Reviews, and Quality Control Materials (QCM) and Continuing Professional Education (CPE) Reviews, as well as a summary of the nature, objectives, scope, limitations of, and procedures performed on them, is provided in the following sections.
Our Firm is enrolled in the AIPCA Peer Review Program, and accordingly, we have our practice reviewed every three years. We proudly inform that we obtained, once again, a peer review rating of PASS (among the possible classifications of “Pass, Pass with Deficiencies, and Fail”) in our last Peer Review performed on September 13, 2019. This opinion is valid until November of 2022.
How is our Quality Control System structured?
The Firm is a member of the AICPA Governmental Quality Center, and has agreed to establish policies and procedures specific to the firm’s governmental audit practice (as defined in the membership requirements) to comply with the applicable professional standards and the membership requirements of the Center. The Firm’s Quality Control Policies and Procedures for the six elements of quality control, are as follows:
- Leadership Responsibility for Quality:
It is the policy of our Firm to promote a culture of quality that is pervasive throughout the Firm’s operations through the development of its system of QC.
- Relevant Ethical Requirements:
It is the policy of our Firm that all professional personnel be familiar with and adhere to relevant ethical requirements of the AICPA, contained in the Code of Professional Conduct, the Puerto Rico Board of Accountancy, and the Puerto Rico Society of Certified Public Accountants, in discharging their professional responsibilities.
- Acceptance and Continuance of Clients and Engagements:
It is the policy of our Firm that for all compilation, review, audit, forecast, projection and attestation engagements, the acceptability of the client and the engagement be evaluated before the Firm agrees to provide professional services, and that the Firm will accept only engagements that it believes can be completed with professional competence after considering the risk associated with providing professional services in the particular circumstances.
- Human Resources:
The success of our Firm is dependent upon its professional staff. It is our Firm’s intent to succeed in the marketplace by having partners and staff who possess the capabilities, competence, and commitment to ethical principles to assure that engagements performed by our Firm are in accordance with professional standards and regulatory and legal requirements and that appropriate reports are issued.
- Engagement Performance:
Engagement performance encompasses many aspects of performing an engagement, from the initial planning stages to the issuance of the report and assembly of the workpapers.
It is the policy of our Firm that our QC System be monitored on an ongoing basis to provide the Firm with reasonable assurance that the policies and procedures established by the Firm for each of the elements of quality control are relevant, adequate, operating effectively, and being effectively applied.
What is the relationship of the peer review results to the audited organization’s work?
The results of an audit are only as reliable as the people involved and the process performed. Being a part of the Peer Review Program, is an excellent way of ensuring that the audit work we perform is in compliance with all requirements. This, in turn, benefits our clients, since they can be assured that the services provided by our Firm are in compliance with the AICPA regulations. On this website, you can find our latest Peer Review Letter and the Peer Review Acceptance Letter, according to what the GAQC and AICPA require.