Your Ask Joey ™ Answer

What is a peer review of an audit firm?

Peer reviews are required for quality control. These are reviews that are performed by one CPA firm to another making sure that they follow the proper quality control systems.

These reviews must take place every three years so that the firm will be allowed to maintain its AICPA membership. The CPA firm reviewing will ensure that the firm being reviewed contains strong policies and procedures for the elements of quality control and are following them in practice.

After the review has been completed, a report will be issued with the conclusions reached as well as the reviewing firms’ recommendations.


Back To All Questions

You might also be interested in...

  • Three Reasons to Become an Accountant

    If you’re someone who is intrigued by numbers, enjoys problem-solving and wants to help others, then accounting might be the perfect career for you. While some people may be put off by its unalluring reputation, accounting is an excellent career choice that has many benefits. In this article, we look at three of the reasons...

  • Qualified Retirement Planning: Tax Advantages & Disadvantages

    Home Advantages and Disadvantages of Tax-Free and Deferred-Tax Retirement Plans What are “qualified retirement plans” and how can they be effective for tax planning? Well, there are plenty of tax savings advantages to individuals contributing to tax-free retirement accounts, as well as tax-deferred retirement accounts. However, this doesn’t necessarily mean that there are no disadvantages...

  • CPA Evolution Survival Guide

    Download Your eBook by selecting the download icon in the top right-hand corner