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.
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