About the Peer Review Alliance
Formed in 2015 by the Illinois CPA Society, one of the largest state CPA societies in the nation, the Peer Review Alliance (the Alliance) is a multistate partnership administering the peer review program for more than 1,700 CPA firms and sole practitioners.
Paul Pierson, CPA Senior Director, Peer Review & Professional Standards, Illinois CPA Society
The State of Peer Review
In today’s complex operating environment, peer review administering entities (AEs) face a series of structural, operational, and regulatory challenges that are permanently reshaping the peer review landscape and therefore their programs. Financial sustainability, volunteer engagement, staffing continuity, and the ability to respond to evolving AICPA standards and proposals are just some of the major tests threatening AEs’ viability moving forward.
Since 2015, the Peer Review Alliance (the Alliance) has grown to a partnership of seven state CPA societies—Illinois, Indiana, Iowa, Kentucky, South Carolina, West Virginia, and Wisconsin—operating as a cohesive AE to address these challenges and more.
The Alliance is your ally in navigating a complex peer review landscape. In joining the Alliance, your peer review program will be better positioned to navigate these realities:
• Firm attrition: AEs largely continue to experience steepening declines in the number of enrolled firms participating in peer review administration, making it increasingly difficult to operate standalone programs with stable administrative costs. The Alliance affords a transition to a viable, sustainable alternative that preserves program quality while improving operational efficiency.
• Volunteer recruitment and retention shortfalls: AEs are progressively struggling to recruit and retain peer review committee members vital to program development, oversight, and administration. Partners of the Alliance benefit from a committee of more than 40 engaged volunteers, which only grows with each new partnership. These members build meaningful professional relationships not only within the committee structure but also within peer review team compositions, strengthening collaboration and continuity. The Alliance works intentionally to incorporate new partners’ committee members into the Peer Review Alliance Committee.
• Personnel succession planning challenges: It’s become increasingly common for AEs to rely on staff and contract personnel who are nearing retirement, creating uncertainty regarding long-term program continuity. The Alliance boasts a team of eight full-time professionals dedicated exclusively to peer review administration, supported by a defined succession plan that promotes long-term stability and knowledge transfer.
• Shifting standards: Recent revisions to peer review standards by the AICPA Peer Review Board introduce additional uncertainty. Firms operating in an alternative practice structure will now have their peer reviews administered by the National Peer Review Committee (NPRC) rather than their home state AE for an undefined period. Additional revisions include a provision allowing firms serving industries deemed to have “elevated risk” to be administered by the NPRC for an undefined period. These potential shifts in peer review administration introduce long-term budgeting and resource planning difficulties for standalone AEs. Here, the Alliance’s position as a larger, well-resourced AE offers economic and operational advantages and safeguards.
• Revised processes, expanding risks: The AICPA is socializing a proposal that would eliminate the process for investigating certain ethics referrals in favor of evaluating alleged violations of accounting and auditing standards as part of a firm’s current or next peer review. The intention is to seek AICPA governing Council approval in May 2026, with a potential effective date of January 2027. Many AEs, peer reviewers, technical reviewers, and committee members are expressly concerned about the heightened risk exposure and increased workload this would introduce. Determining the validity of alleged violations and adjudicating disagreements may fall to peer review administrators and volunteers under the proposed model. If implemented, the Alliance is uniquely positioned to assist as Illinois is an “Option 1” state under the AICPA’s Joint Ethics Enforcement Program. The Alliance is prepared to draw upon its experience to advise and guide peer reviewers and committee members in navigating these expanded responsibilities.
Ultimately, joining the Alliance affords new partners the invaluable benefits of outsourced peer review administration while preserving their identity, committee member involvement, and service to members.
Benefits of Joining the Peer Review Alliance
Lower Administrative Fees
The Alliance’s structure enables cost efficiencies through economies of scale. As a result, lower peer review administrative fees are often realized for sole practitioners and small firms, improving affordability and reducing financial barriers to compliance.
Access to Dedicated, Full-Time Experts
Partners of the Alliance benefit from access to a highly trained and dedicated full-time administrative team, including:
• Experienced scheduling managers.
• Proficient peer review administrators.
• Exacting technical reviewers.
• Compliance-focused CPAs.
This level of professional support ensures timely responses, high-quality guidance, and consistent program administration.
The Alliance affords partners the flexibility to reallocate peer review program administrative staff and budgets toward other strategic and high-value state CPA society initiatives, like expanding member recruitment and retention efforts, advancing advocacy agendas, enhancing educational offerings, growing the talent pipeline, and more.
Participation in the Alliance doesn’t diminish the role of state-based peer review committee members. Instead, their expertise and oversight remain integral to the peer review process through integration with the Alliance’s committee, maintaining continuity, relevance, and local engagement.
The Alliance’s multistate network brings together peer reviewers with varying areas of expertise, allowing for:
• Enhanced matching of reviewer expertise to firm needs.
• Elevated quality and consistency of reviews.
• Greater sharing of best practices among reviewers and committees.
• Stronger reviewer development and continuing education.
Consistent, Clean Oversight
The Alliance has a long track record of producing positive oversight results and strong Report Acceptance Body observations, demonstrating its commitment to quality and consistent adherence to AICPA standards.
Long-Term Organizational Stability
The Alliance was designed to address the long-term reliability and stability effective peer review programs demand. With consistency and longevity in mind, the Alliance offers:
• Stable leadership.
• Mature processes and systems.
• Predictable administrative structures.
The Alliance’s multistate structure reduces familiarity threats that often arise in smaller, localized reviewer groups. The Alliance’s growing large pool of administrators and reviewers strengthens objectivity, independence, and overall program integrity.
Mutual Gain
The Alliance creates a mutually beneficial partnership:
• State CPA societies gain efficiency, expertise, and cost savings.
• The Alliance strengthens its network and expands implementation of its best practices
• CPA firm quality and accountability are enhanced across more regions by a stronger peer review network.
Becoming a partner of the Alliance offers state CPA societies a cost-effective, stable, and high-quality alternative to in-house peer review operations. The Alliance’s proven infrastructure, expert staff, and multistate reviewer network solidify program quality and protect independence—all while reducing organizational burdens.
The Alliance welcomes the opportunity to discuss how it can support your state CPA society’s goals, strengthen your state’s peer review administration, and enhance CPA firm quality for the long term.
Continued Committee Member Involvement
Broader Reviewer Relationships Reduced Risks
