General Information

What are the Practice-Monitoring Requirements?

AICPA members have approved two practice-monitoring requirements. In 1988, they approved an amendment to the Institute’s bylaws that requires all AICPA members engaged in the practice of public accounting to practice only with a firm that is enrolled in an approved practice-monitoring program. A member met the requirement if his or her firm was enrolled in the AICPA Peer Review Program or a member of the Private Companies Practice Section (PCPS) or the SEC Practice Section (SECPS) of the AICPA Division for CPA Firms. In 1990, the members approved another amendment that provided that a member engaged in the practice of public accounting with a firm auditing one or more SEC clients meets the practice-monitoring requirement only if it is a member of the SEC practice section.

In the Fall of 1994, the AICPA Board of Directors and the AICPA Council approved the combination of the peer review program of the Private Companies Practice Section and the AICPA Quality Review Program effective for reviews performed on or after April 3, 1995. At that time, the combined programs were renamed to form the AICPA Peer Review Program and the executive committee having senior status with authority to establish and conduct the review program in cooperation with state CPA societies was renamed the AICPA Peer Review Board.

Does a firm have to enroll in a practice-monitoring program if no audits, reviews or compilations are performed?

Yes. For example, if your firm is a tax practice, it is engaged in the practice of public accounting and therefore must enroll. However, since the firm does not perform audit, review or compilation services, it is not reviewed. Each year, you will be asked to confirm that your firm performs no audits, reviews or compilations. If your firm is a PCPS member, you will be also asked to represent that it meets PCPS membership requirements. If your firm is engaged to perform an audit, review or compilation engagement, you will be expected to have a peer review within 18 months of the fiscal year-end of the first auditing or accounting client accepted.

Who administers Peer Reviews?

The AICPA Peer Review Program is administered in cooperation with the state CPA societies who elect to participate. If your firm is enrolled in the AICPA Peer Review Program or a PCPS member, your peer review will be administered by the state CPA society in which your main office is located or, if that state CPA society has elected not to participate, by another state CPA society. Your peer review will be performed in accordance with the Standards for Performing and Reporting on Peer Reviews adopted by the AICPA Peer Review Board.

Note: Firms who are NCACPA members, but not AICPA members, enroll in the NCACPA Peer Review Program. This program is administered parallel to the AICPA Peer Review Program.