To our valued clients;
The partners and team members of Smith Marion & Co, LLP, are pleased to announce the successful completion of an independent peer review of it accounting and auditing practice. Smith Marion & Co., LLP is a member of the Private Companies Practice Section (PCPS) of the American Institute of Certified Public Accountants (AICPA). In conjunction with this membership, our firm has an outside peer review of our quality control procedures every three years. These reviews include a broad spectrum of engagements. We have consistently received high marks in our peer reviews.
To see a copy of our latest peer review please click here.
A Brief History of Peer Review
In 1988, the members of the American Institute of Certified Public Accountants (AICPA) overwhelmingly approved a proposal that requires AICPA members in public practice to participate in a practice-monitoring program. With the adoption of this proposal, the AICPA implemented a peer review program of unprecedented scope in the CPA profession or any other. Peer review helps assure users of CPA services that their CPA firm measures up to the profession’s high standards of professionalism and is committed to improving the quality of its practice.
What is Peer Review?
Carried out in conjunction with participating state CPA societies and overseen by the AICPA, the AICPA Peer Review Program requires CPAs to have a rigorous, outside review of their accounting and auditing practices once every three years. These reviews determine whether a firm has suitable quality control policies and procedures and is complying with them. Specifically, the reviews focus on the following:
- How the firm implements independence requirements
- How personnel are assigned
- Provisions for consultation when technical assistance is required
- How accounting and auditing engagements are performed and supervised
- Hiring practices
- Continuing professional education programs
- Promotion of personnel
- Obtaining and retaining clients
- Internal inspection of the firm’s work
The reviewers are licensed CPAs who are selected from among the members of the AICPA and who have demonstrated they possess current knowledge of applicable professional standards. During a review, an outside team independently selects a sample of a firm’s engagements and assesses its work on those engagements. The team then reports back to the firm on its findings, making suggestions where improvements may be necessary, and provides the outcome of the review to the state CPA society administering the firm’s review. If a review uncovers deficiencies, the state CPA society prescribes various corrective actions a firm must take or monitoring procedures to ensure a firm adheres to the profession’s standards. In this way, the AICPA consistently receives updates on the quality of its members’ work and the performance of CPA firms. Firms with AICPA members who issue engagements under the Statements on Auditing Standards or examinations of prospective financial statements under the Statements on Standards for Attestation Engagements must have a system review.
How Clients Benefit
Participation in the AICPA Peer Review Program provides CPAs with the opportunity to learn new or improved ways to run their firms and improve client services. This may be as simple as identifying possible inefficiencies, or as broad as determining opportunities to better serve clients. Whatever the case, clients benefit because CPA services become more appropriate for their needs and responsive to the changing business environment. What’s more, clients can be sure their CPA firm measures up to the profession’s high standards of quality and professionalism. Peer review also keeps CPAs current on the latest standards and trends in accounting and auditing. This translates into more knowledgeable advice for those who rely on CPA services. Peer review offers the assurance your certified public accounting firm is committed to performing at the very highest level.
Our firm’s participation in peer review demonstrates our desire to measure up to the profession’s high standards of professionalism and our commitment to maintaining and improving the quality of our practice.
Smith Marion & Co., LLP