Letter of Response
If the firm is having a system or engagement review and received a letter of comments (LOC) it is required to submit a letter of response to the MSCPA.
The LOC outlines the deficiencies the reviewer found while performing the review. The LOR should respond to each of the findings in the LOC and the action the firm is going to take to correct the deficiencies.
The LOR should be carefully prepared because of the importance placed upon it by the Review Acceptance Body (RAB). The RAB will review the LOR to make sure that all findings in the LOC are adequately addressed.
The following are some tips to help prepare an acceptable LOR:
- Address the LOR to the MSCPA Peer Review Acceptance Body.
Respond to each finding, making sure the response is clear and definite.
Separate those findings that are related to a modified or adverse report and those which are not.
Make sure the planned actions will address the deficiencies noted by the reviewer.
Identify which member or members of the firm will be responsible for monitoring implementation of the changes.
Sign the firm’s name and submit the LOR to the MSCPA within 30 days of the exit conference or by the firm’s due date, whichever is earlier.
- Contact the reviewer or the MSCPA technical reviewer if questions arise when writing the LOR.
The firm must submit a draft response to the team captain for suggestions or comments before submitting it to the MSCPA. Please remember, all documents must be submitted by the firm’s due date, or within 30 days of the exit conference, whichever is earlier.
If the firm is having a report review it is not required to submit a letter of response, however, if there are significant findings, the firm may want to submit a letter of response addressing the deficiencies and how the firm will correct them on future engagements.
