Peer Review: Update

Guidance on performing and reporting on quality control material (QCM) reviews was eliminated from peer review guidance by the AICPA as noted in the May 2022 Reviewer Alert. Link: May 2022 Reviewer Alert. QCM reviews are no longer accepted by the AICPA. The AICPA began this change a couple of years ago. You can find a previous peer review update, which indicated that QCM examinations would replace QCM reviews, here. Currently, our 2018 report is the appropriate document to reference. Click here to view our QCM report.

We are in communication with the AICPA; however, they have not yet released clear requirements. The May 2022 Review Alert indicates "the AICPA also expects to issue a guide to assist practitioners engaged to perform and report on QCM content and the related description." We will complete the process as soon as the new requirements are known.

As of now, the May 2022 AICPA Review Alert suggests the following:

A firm may perform its own measurement and evaluation of its QCM by reading the content of the QCM; comparing the QCM content to the relevant standards and interpretive guidance; comparing the relevant standards and interpretive guidance to the QCM content; and testing the QCM content by assuming a set of conditions and applying the QCM content to that set of conditions. Finally, a firm could consider the QCM provider’s experience in the industry and reputation in the market, consult with peers about the QCM, and consider the firm’s previous experience using the QCM.

The 2025 programs have been updated to include all pronouncements deemed applicable that are effective for periods ending on or before December 31, 2024.

We continuously monitor changes to both the peer review process and the audit standards. Currently, we are planning a QCM Examination.

We will continue to provide relevant updates on this page as the situation evolves.

Contact the AuditFile team anytime at [email protected] with any questions or concerns.

Thanks,
The AuditFile Team