When guidance comes from people who have lived the experience, it becomes easier to see what works — and how those lessons can translate to your peer review practice. Practical education and peer-to-peer conversations that apply directly to your practice can help you both adjust to updated peer review standards that incorporate the new quality management (QM) standards and learn about alternative practice structures (APS). You can gain these insights and more at the AICPA® Peer Review Conference, which connects peer reviewers around today’s most pressing challenges.
“Anything that changes in the [accounting and auditing] profession” affects peer review, said Frances McClintock, Associate Director – Peer Review, at AICPA.
Peer reviewers are incredibly important, and you need to be informed to excel in your role. QM and APS are just two hot topics you’re likely facing right now. The conference at the Omni Providence Hotel in Providence, RI, Aug. 10–12, and broadcast live online, blends leadership perspectives with technical updates that enhance your career and are invaluable to your team.
“Peer review works best when the profession’s members learn from each other, and this conference brings the right people together to strengthen audit quality across the profession,” said Dawn Brenner, CPA, owner of Grant Bennett Associates in Sacramento, Calif, and chair of the AICPA Peer Review Board.
When standards and structures shift, questions follow. The conference provides answers.
Recognizing the complexity of both QM and APSs, the conference brings peer reviewers together to unpack what these shifts mean in practice.
QM systems are now in their first full year of implementation to ensure compliance with the Statement on Quality Management Standards (SQMS) No. 1. The standard introduced a risk-based assessment where firms designed, implemented, and operated customized policies and procedures that manage the quality of their accounting and assurance engagements. The new QM standards did not alter the peer review process but they did affect the questions peer reviewers ask firms.
“The QM standards are definitely something everyone is focused on. I know there are going to be a lot of questions,” said Brenner. The challenges stem from peer reviewers wanting guidance on how to handle issues for firms.
While quality management is top of mind for many firms, it’s not the only area where change is affecting peer review.
Practice structures are evolving as strategic partnerships, including private equity investors, enter the accounting profession. Forming an APS enables investments in a nonattest entity closely aligned with a CPA firm while still allowing the CPA firm to maintain adherence to independence and other professional standards regarding attest services. Firms are juggling the new demands while ensuring effective peer reviews continue within firms practicing in an APS and that the appropriate safeguards to protect audit quality are in place.
“Privately held dollars come in and invest in accounting firms and because of that, there [is complexity] in the structures that the firms must maintain. We’re really focused on teaching our reviewers what they should be seeing and what they should be expecting related to APS,” said McClintock.
As firms adapt to new standards and evolving practice structures, it’s natural for questions to surface — many of which require insight and perspective beyond the firm itself.
“It’s one thing to see the standards in writing but it’s another thing to be able to talk to people who have actually been through them and share real-life experiences,” explained Brenner, who hasn’t missed a conference in over 15 years.
Peer reviewers: Helping firms succeed
Working through new standards, updated regulations, and other challenges can spark uncertainty, prompting questions that are best addressed with external expertise and shared experience.
“Peer reviewers have a lot of on their plate and the [conference] is a great opportunity to learn about all that is changing,” said McClintock.
Peer reviewers also play a critical role at firms, explained McClintock, as they provide information about changing standards and AICPA updates, too.
“Peer reviewers speak to firms, and they are the AICPA’s best and most direct access to [many public accounting firms] out there. We really rely on the reviewers to know what’s going on so they can share the word,” added McClintock.
Secure your spot today at the AICPA Peer Review Conference to gain fresh insights to lead your team with confidence. Plus, you’ll earn up to 20 CPE credits.