The value of peer review.

• Author: Spieker, Sandra L.

The "4 C's" of assessing a diamond's value are familiar terms to many. Cut, clarity, color and carat weight are industry standards for determining the rarity and quality of a precious gem. There is much less familiarity with the value that peer review provides to financial statements the public relies upon in making economic decisions. Like the "4 C's," peer review supports professional standards that strengthen public perception and public trust on the reliability of one of the profession's core economic outputs.

Why is peer review so important to this process? A number of professionals contribute their perspectives to the topic.

Knowledge in action

The cut of a diamond refines it, changing the stone from a lump of rock into a valuable gem. Service as a peer reviewer puts knowledge of standards and processes into action, refining the skills of the CPA reviewers and reviewees. CPA firms have discovered added value in investing in offering peer review as a service to other CPAs.

"Being a peer reviewer has had a significant impact on my level of knowledge and my ability to interpret the rules. Within my firm, people rely on me because of the skills that I have developed relating to professional standards," says Jeffrey H. Tucker, CPA, partner with Rea & Associates in New Philadelphia.

"Peer review has helped me learn all the new standards and stay on top of the changing standards in today's times," he adds.

Peer Review Committee member Clayton L Holt, CPA, managing partner of Brell Holt and Company in Toledo, concurs. "Serving as a peer reviewer certainly has made me more aware of the professional standards. To serve the client properly, I have to know what the rules are."

Peer review also provides for an exchange of ideas: the giving and taking of best practices. Members often say that the greatest benefit of peer review comes from the partnership that develops between the firm and the reviewer as an additional outside resource for technical guidance.

"I've learned that I'm not as smart as I thought I was," Holt shares with a chuckle. "There are a million ways of doing things. As a reviewer, you can actually see what's going on in the field."

Tucker also cited camaraderie as an important benefit of being a reviewer. "I get to meet a lot of great people. I enjoy being able to go out and meet CPAs from other firms. It gives me a real respect for other people in this profession," Tucker says.

Peer review at its core is about reinforcing the...