Peer Review

Pennsylvania Licensing Requirements

The Pennsylvania CPA Law (Section 8.9) now contains a peer review requirement for all Pennsylvania licensees performing audit or review engagements. A firm (or sole practitioner) must complete a peer review if the firm performed an audit or review engagement during the previous two years.

Firms that (a) have not performed audit or review engagements during the previous two years and (b) do not intend to accept or perform an audit or review engagement during the next two years are exempt from the requirement.

New firms, and those taking on audits or reviews for the first time, have eighteen months from the commencement of the first such engagement to comply with this requirement.

If you are required to have a peer review, make sure that your firm is enrolled in the appropriate peer review program:

1. If your firm is required to register with PCAOB, you must enroll in the Center PRP which is directly administered by AICPA.
2. If you (or a partner in the firm) are an AICPA member, but the firm is not required to register with PCAOB, you may enroll in the AICPA PRP, which is administered in Pennsylvania by PICPA.
3. If you need a peer review only for Pennsylvania licensing purposes (ie. no partners in your firm are members of the AICPA), you should directly enroll with PICPA.

Firms are assigned a peer review due date based on when they enroll in the peer review program. This due date is independent of the time frame imposed by the Pa. CPA Law and is not recognized by the Pa. State Board of Accountancy. If your firm needs to undergo peer review before the listed due date to comply with the Pa. CPA Law, please indicate that on the enrollment form submitted.

Any extensions for Pennsylvania license renewal purposes must be requested from the Pa. State Board of Accountancy.