Boards Sent AICPA Proposal

State Board Report

August 2016

A seven-page report entitled "Proposed Evolution of Peer Review Administration: A Supplemental Discussion Paper Seeking Input from State Boards of Accountancy," was released for comment by the AICPA on July 18. Its forthcoming release was announced by AICPA Vice President James W. Brackens at NASBA’s June Regional Meetings (see sbr 7/16). NASBA Compliance Assurance Committee Chair John F. Dailey, Jr., told the July 22 NASBA Board of Directors’ meeting that the CAC will be responding to the paper and will be surveying the State Boards to gather information for that response.

The AICPA paper asks State Boards to consider the following questions when formulating their responses:

• "Considering the information presented in the proposed model, what changes do you believe will increase consistency in peer review acceptance results?
• "Considering the information presented in the proposed model, what changes do you believe will best promote proper and timely application of Standards and guidance?
• "How do you believe the familiarity threat in the peer review acceptance process can best be minimized?"

As specifics about how the reorganized Peer Review Program will operate have yet to be determined, Mr. Dailey observed the CAC and State Boards will be challenged to design an oversight plan that works smoothly with the new structure. State Boards will need to find out if their state societies wish to continue as administering entities for the Peer Review Program, or if they will be dropping out of that role.

The changes under consideration address the current AICPA Peer Review Program, not the AICPA’s Practice Monitoring of the Future initiative. As the paper states: "The initiative conceptualizes a future technology-driven system, much different from today’s peer review process. Upon the realization that the Practice Monitoring of the Future will take several years – and the input of many stakeholders – to achieve actualization, the Peer Review Board resumes its focus on improvements to the current Program."

The AICPA has requested comments on its paper be sent to Beth Thoresen, AICPA Director- Peer Review Operations (prsupport@aicpa.org) by October 31, 2016. Mr. Dailey has requested that the Boards send copies of those responses to Leona Johnson, Liaison to NASBA CAC (ljohnson@nasba.org) as well, to ensure the CAC can also consider them.