The art of peer review: everything you need to know about being a peer reviewer.

• Author: McCrone, Linda

Starting with the basics, firms are peer reviewed every three years. The CalCPA peer review program notifies firms in the last month of their peer review year to complete a Peer Review Scheduling form, available at www.calcpa.org/PRseheduling. The firm's review must be completed and submitted by the due date, which is six months from the year-end, 'the peer review must commence after the firm's peer review year-end. Audit, compilation and review engagements are included in a peer review year if the latest period covered falls in the peer review year. Engagements under the Statements on Standards for Attestation Engagements (SSAEs) are included if the date of the report falls within the peer review year.

New firms must first submit an enrollment Form, from which they are given a firm number, a review number and a due date. If this is the firm's first peer review, you need to assist the firm in determining an appropriate year-end. See our June 2011 peer review newsletter www.calcpa.org/june2011) which contains information on choosing a year-end.

Engagement reviews are available for firms that only perform reviews and/or compilations. Standards for Performing and Reporting on Peer Review paragraph .104 defines the number of engagements to be reviewed. Reviewers should not look at more than the required amount. Also, most SSAEs engagements can be peer reviewed at this level, see www.aicpa.org/pesystoreng for exceptions. SSAEs engagements performed under Government Auditing Standards must be peer reviewed under a system review.

For a system review, a risk-based approach is used to determine how many engagements will be reviewed. The focus is on the number of audits because the peer review of the review and compilation part of the practice is not as time consuming. In the Peer Review Scheduling form, the firm lists its audit industries, which are matched to your resume. You may use a learn member, who can either go to the firm's office with you or review We engagement(s) in advance of your going to the firm. You are required A to notify CalCPA prior to starting the peer review if you change the team member.

Do not begin the review without receiving notification from CalCPA that you have been approved as team captain or review captain. Add ca@prepa.org and peerreview@calcpa.org to your email sale senders list to ensure you receive all peer review information. Also, please make sure that firms are aware of this since most communication is by email. Do not use the reply button to an email from ca@prcpa.org because these emails are From our AICPA database and too numerous for us to monitor. Instead, send email to peerrevicw@ciyalepa.org.

If you become aware that your peer review client has acquired another practice (or a portion of a practice), or there has been a divestiture of a portion of the practice during or subsequent to its peer review year, consult with the administering entity prior to the commencement of the review. The scope and timing of the review could change, depending on the effects of the acquisition or divestiture.

Scheduling the Review

When you obtain the firm's listing of its engagements, make sure that the year-end used on this listing agrees with the firm's peer review year-end. In engagement reviews, you...