An Analysis of CPA Perceptions of the Peer Review Process.

• In Event: Breakfast and Research & Education Table Forum
  In Roundtable Session: Table 7: Auditing Environment

Abstract

The AICPA Peer Review Program requires member firms and individuals to undergo a triennial peer review as part of required practice monitoring. The ultimate goal is to promote quality in the accounting and auditing services to best serve the public interest. This self-regulatory process is currently a topic of interest to the profession, as the AICPA is developing and implementing changes to improve the value and relevance of the process to all parties. We surveyed 152 experienced CPAs regarding their perceptions of peer reviewers’ competence, plus the quality benefits and impact of the peer review process.
We found many CPAs viewing the peer review process as a means to have the AICPA and others drive out many practitioners from performing audits and other attest services, but supporting an improved peer review process. We also see a need for the AICPA, state boards of accountancy, and state CPA societies to inform their members and constituents of the benefits of peer reviews. Finally, many respondents’ viewed per reviews of a self-serving lens—those performing or using peer reviews wanting to expand its applicability than those who did not.

Authors

• Alan Reinstein, Wayne State University

• Barbara Apostolou, West Virginia University

• Timothy J Fogarty, Case Western Reserve University