Peer Review Oversight Policy

The Peer Review Committee is required by AICPA guidelines to perform oversight on reviews of AICPA member firms and will do so as part of a regular process to assure the consistency and quality of the program.  The RAB committees will identify reviews for oversight where a concern arises about the quality of a review or reviewer, where there is an unresolvable disagreement between the reviewer and the reviewed firm or for any reason deemed appropriate by the committee.  Each year, at a minimum, the administering entity will conduct oversight on 2% of all AICPA members’ reviews performed in a twelve month period and within the 2% selected there must be at least 2 of each type of peer review (system and engagement reviews). Whenever possible, system reviews containing ERISA engagements, engagements under Government Auditing Standards or FDICIA engagements, will be considered first for on-site oversight; otherwise, two engagement oversights of "must select" engagement will be performed to meet the minimum oversight requirement for the year.  The chair of the executive committee or individual RAB chair will approve all AICPA members’ reviews selected for oversight and any non AICPA members’ reviews as recommended by the RABs.

All oversight reviews will be performed by reviewers who qualify as system review team captains.  Preference will be given to current Peer Review Committee members, followed by former committee members.  The MSCPA administrative staff will advise the reviewed firm of the oversight and the oversight reviewer performing the oversight.  The team captain will inform the MSCPA staff of scheduling dates.  MSCPA staff will then coordinate the oversight review with the team captain, the oversight reviewer and the reviewed firm.  Depending on the nature and timing of oversight required, the oversight review will be performed either at the reviewed firm’s offices or at the oversight reviewer’s office.  The original reviewer can, if desired, at his or her own expense, attend the oversight review as it is being performed.

The oversight reviewer will receive information regarding specific concerns of the committee and a suggested time budget.   Oversight reviewers should inform the MSCPA administrative staff if they will exceed the time budget prior to the overage occurring.  Oversight reviews may result in a change of a previously issued report or FFCs.  The reviewed firm or the reviewer may appeal any of these changes through the normal process.

Oversight reviewers will be compensated at the rate of $200 per hour and will be reimbursed for their travel time and costs and any out-of-pocket expenses by the MSCPA Peer Review Program.  If agreed upon by the reviewed firm, oversight reviewers will be assigned to firms located nearby to minimize travel time and costs.

Oversight reviews will be performed using the appropriate AICPA checklists.  Reviewers performing oversight will submit a memo to the committee detailing their findings within two weeks of the review.  Reviewers undergoing oversight will receive a copy of the memo and will have an opportunity to respond.  

In addition to possibly causing a change in the report or FFCs, the results of the oversight may also be used as documentation of problem reviewers and can be the basis for further action.

Oversight will also be performed on the MSCPA Peer Review Program to ensure that the MSCPA program is being administered in accordance with guidance as issued by the AICPA Peer Review Board.  A member of one of the MSCPA peer review committees will perform administrative oversight in years when the AICPA Peer Review Board Oversight does not oversight the program. 

As part of our oversight procedures, the MSCPA will request information from all Missouri reviewers divided (33% each year) over a three-year period, to verify Missouri reviewers have the required experience to perform peer reviews.  This request will include:

• The number of total CPE hours obtained by year in the current and preceding two years and certificates, if necessary,
• The number of A&A CPE hours obtained by year in the current and preceding two years and certificates, if necessary,
• The information submitted in connection with their firm’s last peer review pertaining to types of engagements performed,
• Information as to engagements that they perform or supervise in their firm that qualify them as a reviewer in practice areas and industries checked on their resume form,
• We will request that they update their resume on the AICPA website before submitting the information,
• Verification of compliance with governmental CPE, if necessary.

The MSCPA Peer Review Committees are committed to adhering to AICPA policies and procedures established by the AICPA Peer Review Board.

Adopted by the MSCPA Peer Review Executive Committee, December 2000
Amended and approved by the MSCPA Peer Review Executive Committee, November 2005
Amended and approved by the MSCPA Peer Review Executive Committee, December 2009
Amended and approved by the MSCPA Peer Review Executive Committee, December 2010
Amended and approved by the MSCPA Peer Review Executive Committee, November 2011