5 minute read
Elevate your practice with peer review
By Laura Hay, CPA, CAE, President & CEO, The Ohio Society of CPAs
Peer review plays a crucial role in the profession's comprehensive framework for safeguarding the public. This framework also encompasses ethical and professional standards, the CPA state licensing system, and the oversight and enforcement efforts of state and federal regulators.
Peer reviews are conducted under the Clarified AICPA Standards for Performing and Reporting on Peer Reviews, which are established by the AICPA Peer Review Board. The purpose of these standards is to improve the profession's effectiveness and ensure the delivery of high-quality services that uphold the public's trust.
If you lead an accounting and auditing practice, your firm already has resources that can be scaled to develop a peer review practice, increasing your overall value and solutions provided. Is peer review a great fit for you and your firm?
Why become a peer reviewer?
Becoming a peer reviewer allows you to contribute to the quality of the accounting profession by evaluating other firms’ practices, enhancing your own knowledge and expertise, gaining recognition as a leader in the field, developing networks, and opening new business opportunities. Key reasons Ohio’s peer reviewers identified for why they appreciate being a peer reviewer include:
Professional developmentPerforming peer reviews deepens the reviewer’s own understanding of accounting and auditing standards, quality control practices, and firm best practices.
“Delving into the standards as part of peer review surely keeps me on my toes!” said Jodey Altier, CPA, Perry & Associates.
“This also addresses the development of managers in the firm as we put them on peer review teams,” said Chad Welty, CPA, Rea & Associates, Inc.
Reputation buildingReviewers gain respect and recognition in the accounting and auditing community as experts in the profession.
Contributing to the professionReviewers are often motivated by the vital role they play in upholding professional standards and ensuring the quality of professional services provided to the public.
“Helping firms improve processes, helping them find the right education to address deficiencies in their practice, and helping both them and us to gain confidence in practices and procedures,” were some of the benefits identified by Mark Welp, CPA, Holbrook & Manter, CPAs.
Networking opportunitiesPeer reviewers can connect with other professionals through the peer review process, potentially leading to new business relationships.
“I especially enjoy the relationship building with peer review clients,” added Welty. “This provides a larger network for referrals, consultations, sharing more effective approaches, and generating ideas we can bring back to our firm to discuss.”
“The relationships with other peer reviewers I’ve developed by being involved in the peer review program are truly one of my professional life’s greatest gifts,” said Altier. “A number of peer review mentors I respected and adored helped shape my career.”
Business development potentialIn addition to adding a profit center for the firm, peer reviews can lead to additional consulting engagements or firm collaboration opportunities.
Staying current with industry trendsBy reviewing other firms’ work, peer reviewers stay informed about the latest accounting and auditing developments, as well as updates across various industries.
Enhancing the firm’s A&A practiceKnowledge gained through the peer review process helps firms meet their own business goals and enhance their A&A practice.
“It’s another great source of revenue for your firm without doing that much extra CPE training,” said Welp. “You are building upon a service that you already know how to do.”
Other“Peer review adds additional variety to enhance the day-to-day/year-to-year work,” said Welty.
Dare we say it can be fun, in addition to being professionally rewarding?
How to become a peer reviewerQualifications to become a peer reviewer include:
Active, non-suspended member of the AICPA
Licensed to practice as a CPA
Currently active in public practice in the accounting or auditing function of a firm enrolled in peer review, as a partner, manager or person with equivalent supervisory responsibilities
Currently active means that a reviewer should supervise one or more of the firm’s accounting or auditing engagements or carry out a quality control function on the firm’s accounting or auditing engagements.
If the firm’s most recent peer review was an engagement review, the reviewer is not eligible to serve as a team captain for system reviews.
Associated with a firm (or all firms if associated with more than one) that received a pass rating for its most recent peer review
Knowledgeable on professional, peer review and quality control standards applicable to the kinds of practice to be reviewed
Completed CPE of at least 8 hours per year and 48 hours every three years in accounting, auditing and quality control
Have at least five years of recent experience in public practice in the accounting or auditing function in the industries and levels of service for which engagements are reviewed
Have provided the administering entity with information that accurately reflects the qualifications of the reviewer including recent industry experience, updated annually
More information on the training requirements for peer reviewers can be found at:
https://www.aicpa-cima.com/resources/article/cpe-and-events-for-peer-reviewers
More information on the peer review program is located at:
https://www.aicpa-cima.com/resources/landing/peer-review
Additional details are included in a frequently asked questions document:
Intrigued? Please reach out to peerreview@ohiocpa.com if you are interested in becoming a reviewer in Ohio, and we’ll be happy to assist you.
OSCPA President & CEO Laura Hay, CPA, CAE, is the staff liaison to the Accounting, Auditing, Professional Ethics Committee and the Peer Review Ethics Committee. She can be reached at Lhay@ohiocpa.com or 614.321.2241.
