Get 118-E Research Addendum 1 Research Addendum For Peer Review ...

Must-pass evaluation Since peer review is required by state accounting licensure boards, firms that pass with deficiencies or fail must undergo a rigorous, point-by-point process to improve quality. This process is called remediation, and firms that fail remediation are in danger of having their license revoked.

The clarified standards are effective for peer reviews commencing on or after May 1, 2022, and early implementation is not permitted. The changes that will be reflected in the final standards include: The majority of procedures in a system review will not be required to be performed at the reviewed firm's office.

Statement on Standards for Accounting and Review (SSARS) No. 21 represents the efforts of the AICPA's Accounting and Review Services Committee (ARSC) to clarify and revise the existing standards for reviews, compilations, and engagements to prepare financial statements as a result of ARSC Clarity Project.

A peer review is based on selective tests, directed to assess whether the design of and compliance with the firm's system provides the firm with reasonable, not absolute, assurance of performing and reporting in conformity with applicable professional standards in all material respects.

The theory predicts that ex-post evaluation encourages high-risk research while ex-ante evaluation discourages it because “investigators can leverage the differences between their private beliefs and those of the community when peer reviewers evaluate a completed experiment, but they have no opportunity to leverage ...

By enrolling, a firm agrees to have a peer review of its accounting and auditing practice once every three years subsequent to its initial peer review. A firm's initial review is ordinarily due 18 months from the date it enrolled (or should have enrolled) in the Program.

There are two types of peer reviews - System and Engagement. System Reviews focus on a firm's system of quality control, and Engagement Reviews focus on work performed on selected engagements.