For CPA Firms to remain valid we are required to have a peer review performed at least every 3 years. Yes, that means we get audited too! The American Institute of CPAs (AICPA) is the entity that governs all CPA firms and ensures that we follow all laws and regulations applicable to us. To do this they formed what is called the Peer Review Program.
This program is an in depth process much like an audit and is well respected and followed by not only other firms but private public and governmental entities as well. We are reviewed on our ability to perform with the utmost efficiency and integrity as well as how we handle our own financial endeavors.
A CPA Firm is provided a score at the end of the review. The scores are either Pass, Pass with Deficiencies, or Fail. A Pass proves the firm is operating correctly under all laws and regulations and handles its own financial endeavors in a professional manner as well as providing high-quality service to all audit tax or consulting clients.
Want to know more about Peer Reviews? Click below to see the current Texas guidelines for a CPA Peer Review!