14 Sep Why a CPA Firm’s Peer Review Matters
When choosing a CPA firm, credentials matter. One of the strongest indicators of reliable tax and accounting quality is whether the firm has successfully completed a peer review administered through the American Institute of CPAs (AICPA) and, in Michigan, the Michigan Association of CPAs (MICPA). [micpa.org], [peerreview.aicpa.org]
A peer review is an independent evaluation of a CPA firm’s accounting, auditing, and attestation work to determine whether it complies with professional standards. For firms that perform these services, peer review is required on a recurring basis. In the United States, firms preparing reviewed or compiled financial statements generally must undergo a peer review every three years. [micpa.org]
The process is rigorous and includes:
- Enrollment in the AICPA Peer Review Program.
- Selection of a qualified, independent reviewer.
- Examination of a sampling of the firm’s completed engagements.
- Review of documentation for compliance with professional standards.
- Evaluation by technical reviewers and a Report Acceptance Body (RAB).
- Possible corrective actions before final acceptance. [micpa.org], [assets.ctfassets.net]
Why should consumers care?
- Provides confidence that the firm follows established professional standards.
- Demonstrates a commitment to quality, accuracy, and continuous improvement.
- Reduces the risk of errors in financial reporting and assurance services.
- Shows the firm has undergone independent oversight rather than simply self-assessing its work. [peerreview.aicpa.org], [micpa.org]
Consumers can verify a firm’s status by:
- Asking the CPA firm for its most recent peer review report.
- Searching the AICPA Peer Review Public File Search, which displays enrollment status and available peer review information for participating firms. [peerreview.aicpa.org]
- Reviewing information available through MICPA resources and compliance programs. [micpa.org]
Choosing a CPA firm that has successfully completed peer review provides reassurance that the firm has met rigorous professional standards and is committed to delivering high-quality service.