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State Board Report

December 2015

An exposure draft of proposed changes to the AICPA Peer Review Program that are aimed at improving the program’s transparency and effectiveness has been released by the AICPA Peer Review Board. Comments on the document should be sent to PR by January 31, 2016. The proposed changes in standards place on the reviewed firm the ultimate responsibility for identifying and implementing appropriate remediation of system issues and nonconforming engagements. Under the proposed standards, the peer reviewer would be expected to perform enhanced procedures to identify systemic causes and assess the firm’s remediation plans. In addition, the AICPA states: "The proposals provide the public with more transparent reporting of engagements selected, linkage between nonconforming engagements and report rating, industries impacted by the deficiencies and the firm’s remediation plans. The proposals also clarify what information can be provided to third parties about the progress and results of a review."

If approved by the Peer Review Board, the revisions to the Standards and Interpretations would become effective for reviews commencing on or after January 1, 2017 except for those related to transparency of review status. Standards paragraphs .133 and .146 and Interpretations 133a-1 and 146 3 would be effective upon approval by the Peer Review Board.

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