The selection of the peer reviewer(s) is a critical step in ensuring that a firm’s peer review is efficient, cost-effective and adds value to the firm’s quality control policies and procedures.  Firms that approach this decision with care are likely to receive the optimal benefits of the process.

This selection process should begin well in advance of the firm’s peer review due date.  Reviews are administered by the Arkansas Society of CPAs in accordance with policies and procedures established by the AICPA Peer Review Board.  The Peer Review Coordinator will send out requests for scheduling information to firms approximately six (6) months before the review is due. 

Most peer review “teams” only consist of one reviewer.  On some larger reviews, a team of more than one (1) person may be involved in the review.  The lead peer reviewer is called the team captain and other reviewers are known as team members.  The AICPA maintains a database of individuals interested in serving as reviewers.  All reviewers complete a “resume” containing information that is listed in the database.  The information includes the reviewer’s firm, the last peer review training course attended, the industries in which the individual has expertise and how that expertise was obtained.  The AICPA Standards for Performing and Reporting on Peer Reviews sets the minimum requirements that team captains and peer reviewers must possess, including experience, continuing professional education, peer review training, etc.  All reviewers are expected to update their resume every year.

In the state of Arkansas, we perform firm-on-firm (FOF) reviews.  The firm to be reviewed directly engages another firm to perform the review.  The fees associated with the actual peer review are negotiated between the two (2) firms.

The firm must notify the Peer Review Manager of their choice of peer reviewer and the Peer Review Manager must then approve the reviewer prior to the start of any aspect of the peer review.

Members of the peer review team must be independent in fact and in appearance with respect to the firm.  If the firm is unsure as to its independence status with respect to any members of the peer review team, the matter should be discussed with the Peer Review Manager.