Journey through a peer review – reviewing firm approved

Part 3 of my journey through the peer review process.

Previously I mentioned there’s a 30 day deadline from when my scheduling form was approved until I needed to advise CalCPA which firm I would like to perform my review.

Well, I didn’t hit the 30 day deadline. So two days after the deadline I received a reminder saying I have an extra 15 days.

It’s almost like the administering entities have figured out that CPAs don’t do things until they have a deadline staring them in the face. Imagine that!

I’ve now made arrangements with the firm that will do my review. I filled out Exhibit 1, which only took a few minutes.

(Yes, yes, you many now laugh at me because I didn’t get a firm lined up until after the first deadline.)

Exhibit 1

This is the form used to notify the administering entity which firm you would like to perform the review.

You will need contact information for the firm along with the name of the team captain and team members, if there’s more than 1 person providing the review.

You will also need the AICPA firm number for the reviewing firm and the AICPA member number for the team captain and team members. Obviously you have to get that information directly from the firm.

You will need to answer five questions that explore whether there are any relationships with the reviewing firm that could create conflicts of interest. Independence is required to provide a peer review. If that is impaired you will need to find another firm.

You will also need to provide an estimate of when the review will begin and the expected exit conference date. Those should be before the deadline for your report and all paperwork to arrive at the administering entity.

The administering entity will make sure there is a match of your practice with the experience of the reviewer. They also evaluate any relationships you may have with your reviewer.

After you submit Exhibit 1

So, I sent the form off to CalCPA on Wednesday. On Thursday I received a letter back approving the firm.

At the bottom of the letter there was a comment that the reviewing firm was CC’ed on the letter. I know from providing reviews that the administering entity sends out a notice to the reviewing firm, but it has slightly different text.

It is not necessary to do so, but it might be worth making sure that your reviewer got the letter.

Perspective on timing in relation to peer review cutoff

My peer review year-end is May 31.

That is a good cutoff since the peak of my attestation work is with clients whose year-end is December 31. My practice has a second peak of June 30 year ends.

The May 31 year-end plus a 6 month deadline for the report means my peer review report is due to the administering entity by November 30.  That in turn means field work in September or October.

That gives me plenty of time to get all my December 31 work completed.

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