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About Peer Review
The OSCPA administers peer review programs and provides a variety of services to members who want to have their firm's practices and procedures reviewed by other CPAs with experience in the peer review process.
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Peer Review Requirements:
The peer review requirements for firms practicing public accounting are complex. The following is an explanation of the requirements for the Oregon Board of Accountancy, American Institute of Certified Public Accountants and the Oregon Society of Certified Public Accountants.
Oregon Board of Accountancy [BOA]
Every firm that performs attest or compilation services in Oregon or for Oregon clients, is required to participate in an approved peer review program as a condition of registration under ORS 673.160 and for each renewal period.
The BOA license renewal form asks:
- In which approved practice-monitoring program the firm is enrolled, and the period covered by the most recent review.
- The firm to certify that the peer review report received during the two-year licensing period then ending did not trigger the reporting requirement as defined below.
Beginning in 2006, Firms that receive any of the following substandard peer review reports will be required to provide written notice to the BOA within 45 days of the date of the acceptance letter issued by the peer review acceptance body. (See details)
- Two consecutive modified system review reports;
- One adverse system review report;
- Two consecutive adverse engagement review reports;
- Two consecutive report reviews with “significant comments”;
- An adverse engagement review following a modified engagement review;
- One report with a scope limitation; and
- Any combination of the above.
- Documents required:
- Peer review report,
- Letter of comments,
- Letter, if any, form the peer review acceptance body prescribing corrective actions,
- Firm’s letter of response, and
- Firm letter to the BOA describing corrective action taken in response to the peer review report.
- Firms may also submit other information the firm deems important for the BOA’s understanding of the information submitted.
The BOA Peer Review Oversight Committee evaluates alternative programs and recommends to the Board the programs that meet the minimum review standards. The programs currently approved by the Board to meet the review requirement are:
- AICPA Peer Review Program [administered by a state society]
- OSCPA Peer Review Program [administered by the OSCPA]
- Center for Public Company Audit Firms (CPCAF) Peer Review Program [administered by the AICPA]
- Public Company Accounting Oversight Board (PCAOB)
State society programs, based upon the AICPA Standards for Performing and Reporting on Peer Reviews, may meet the requirement. Other programs are welcome to apply to the BOA for approval
A licensee or permit holder that:
- Resides outside of Oregon
- Does not have an office in Oregon and
- Does not perform accounting and/or auditing services for Oregon entities, does not need to meet the review requirement.
However, if the licensee or permit holder resides, or has an office, in Oregon and performs accounting and/or auditing services, even though those services are not performed for Oregon entities, the licensee or permit holder must meet the review requirement.
American Institute of Certified Public Accountants [AICPA]
All AICPA members who are engaged in the practice of public accounting are required to be practicing as partners or employees of firms enrolled in an approved practice-monitoring program. If AICPA members are practicing in firms not eligible to enroll, then members may enroll themselves in such a program if the services performed by such a firm or individual are within the scope of the AICPA’s practice-monitoring Standards and the firm or individual issues reports purporting to be in accordance with AICPA professional standards.
A member can meet the requirement if his or hers firm us enrolled in the AICPA Peer Review Program or the Center for Public Company Audit Firms (CPCAF) Peer Review Program. Firms that are required to be registered with and inspected by the Public Company Accounting Oversight Board (PCAOB) must enroll in the CPCAF Peer Review Program. Reviews of firms enrolled in the CPCAF Peer Review Program are carried out under the Standards issued by the CPCAF Peer Review Committee.
Only the AICPA review programs meet the AICPA review requirement. Enrollment in the AICPA review programs meets the Oregon BOA peer review requirement. In order to be enrolled in one of the AICPA review programs, at least one owner of the firm must be a member of the AICPA.
Oregon Society of Certified Public Accountants [OSCPA]
The OSCPA does not require enrollment in a review program as a condition of membership. The OSCPA administers the AICPA. In addition, the OSCPA contracts with the Oregon BOA to administer the OSCPA Peer Review Program for licensees who are not members of the AICPA.
Questions? The OSCPA Peer Review Division will help you determine which requirements apply to you or your firm.
503-641-7200 / 1-800-255-1470, ext. 27.
Directory of Firms Interested in Performing Peer Reviews
