The American Institute of CPAs peer review board will implement several key changes in its revised Standards for Performing and Reporting on Peer Reviews (AICPA Professional Standards, vol. 2, PR section 100). The most significant changes in the exposure draft remain, with little or no change, in the final version. These include
* Requiring a firm that performs any type of engagement covered by statements on auditing standards to have an onsite peer review.
* Expanding the definition of an accounting and auditing practice for peer review purposes to include attestation services on financial information when the firm audits, reviews or compiles historical financial statements of the client.
* Implementing a risk-based approach to peer review engagement selection.
* Resolving inconsistencies between onsite and offsite reviews in determining yearends.
* Allowing the peer review team captain to review another firm an unspecified number of times instead of limiting reviews to only two consecutive times.
(Details were outlined in "Peer Review Reform," JofA, Sept.96; page 4.) R. Bruce Brasell, AICPA peer review technical manager, said...