The peer review program is an approved practice-monitoring program and is applicable to all members of the AICPA and state-society who perform an audit, attest, review or compilation, and preparation engagements. The CPA who is practicing as a partner or employee of a firm and who is also enrolled in an approved practice-monitoring program must have a peer review every three years in order to renew his or her CPA license. Otherwise, the CPA must opt-out and not perform an audit, attest, examination, review, or compilation services. If any CPA performed the above-stated services and neither having the peer review nor disclosures, then the CPA would have ethical violation issues. More importantly, the CPA would lose his/her license as a punitive penalty by the applicable state board of accountancy.
The purpose of the peer review, which is an evaluation by peers, is to promote and enhance quality in the accounting and auditing services provided by the CPA firms and individuals.
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