Peer Review

Tips for Selecting a Reviewer

You have decided you want a firm-on-firm review. Here are a few suggested steps to help you select a qualified firm that best meets your needs:

• Obtain general background information from each firm. Ask for a firm brochure, partner resumes, newsletters, and other available marketing material.

• Ask to see the report and letter of comments on its most recent review, and its responses to the recommendations of the reviewer. Then consider whether the firm has successfully implemented quality control standards for its own practice.

• Determine which individual the firm will assign as your reviewer. Meet with or talk to the reviewer. Make sure he or she has experience with industries that make up the largest part of your practice or are unusual and complex. The firm and the reviewer must meet certain requirements to qualify under AICPA standards to perform reviews, so ask the firm if it's qualified.

  For example, if your firm has engagements subject to Government Auditing Standards, performs audits of employee benefit plans, or practices in certain other areas, the reviewer must have experience in those disciplines. PICPA will verify that the firm and reviewer(s) you select are qualified.

• Ask for references, particularly from firms of your size that have been reviewed by the firm. Call those firms and ask if they were satisfied and whether they received useful recommendations.

• Obtain a fee estimate. How much the review costs is a matter of negotiation between you and the firm you have selected to perform the review. Remember, many firms offer special expertise or additional services.

  In addition to the peer review fee, you will be billed by PICPA for administrative costs in carrying out the peer review program. These costs are incurred and billed whether your firm has a CART or firm-on-firm review.

• Select a firm to do your review.

• Set the date for the review.

• Provide sufficient time to prepare.

• Obtain a draft of the engagement letter - but do not sign yet.

• Send PICPA the name of the firm and the name of the reviewer(s). No matter which firm you select to perform your firm-on-firm review, do not sign the engagement letter or schedule your review until you have first notified the PICPA.

  We are required to review the information you provide us about the firm and the individual reviewer(s) to determine if they qualify under AICPA standards to perform reviews, they possess the appropriate industry experience, and there are no scheduling conflicts that could cause a disruption to the timely and efficient completion of the review. We will send you a short form asking for certain basic information about the firm and the reviewer(s) so that we can make these assessments. When you have our response in hand, you may proceed with the review.