Task force releases recommendations for enhancing peer review transparency.

At a meeting of the AICPA Board of Directors last month, an AICPA special task force released a set of recommendations to enhance the transparency of the Institute's Peer Review Program. The task force addressed the input of users and CPAs on how to best improve the peer review process.

Recognizing the increased demand for peer review information by regulators and other users, for instance, the task force recommended that the peer review reports of firms that have received a second consecutive modified and any adverse peer review report should be provided to state accountancy boards.

Other key task force recommendations include:

* Peer review reports should be as concise as possible and written in "plain English." The "grading" terminology should be simplified and the report should be a stand-alone document that discloses significant matters affecting the type of report issued.

* The current oversight processes should be made more transparent by communicating the objectives, procedures and results of oversight to the public through annual reports.

* All state boards should require peer review as a condition of licensure.

* The AICPA should conduct a comprehensive peer reviewer recruitment campaign to attract new, quality peer reviewers and educate firms on the benefits of having their owners and staff members involved in performing peer reviews.

* The AICPA's Peer Review Board should continue to ensure the high quality of peer reviewers, and consider additional minimum criteria to be a peer reviewer.

* The AICPA should provide a mechanism for members to comply with state board licensing requirements by allowing any AICPA firm to post its peer review results in the AICPA's current...