Peer Reviewed

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Peer Review Program

A Peer Review is a systematic review of a firm's accounting and auditing services performed by a peer reviewer who is unaffiliated with the firm being reviewed to ensure work performed conforms to professional standards.


December 18, 2013 - DiSabatino, CPA is proud to report that we passed our peer review process with the highest scoring level, a pass.

A Peer Review is required for all California-licensed CPA firms, including sole proprietorship's that perform accounting and auditing services using the following professional standards:

  • Statements on Auditing Standards (SAS)
  • Statements on Standards for Accounting and Review Services (SSARS)
  • Statements on Standards on Attestation Engagements (SSAE)
  • Government Auditing Standards (Yellow Book)
  • Audits of non-Security Exchange Commission (SEC) issuers performed pursuant to the standards of the Public Company Accounting Oversight Board (PCAOB)
A Peer Review is conducted every three years of a California-licensed CPA firm. The highest mark a CPA firm can receive is a Pass. The Peer Review is administered by the California Society of Certified Public Accountants using the American Institute of Certified Public Accountants Peer Review Program.

Want to know more about the Peer Review Processs....

  • What is a Peer Review?

    The California Board of accountancy requires California CPA firms are required to have a peer review, once every three years, of their accounting and auditing practice related to non-Security and Exchange Commission (SEC) issuers covering a one-year period. The peer review is conducted by an independent evaluator, known as a peer reviewer. The California Society of CPAs oversees the program, and the review is administered by an entity approved by the Society to perform that role.
  • Why is this Important to our Clients?

    Part of our commitment to our clients is to provide the highest quality of professional services, ensure compliance with the latest industry standards and meet the strict integrity guidelines set for the practices of public accounting, and so we voluntarily submit to "Peer Review.” The peer review helps to monitor a CPA firm’s accounting and auditing practice (practice monitoring). The goal of the practice monitoring, and the program itself, is to promote quality in the accounting and auditing services provided by the CA Board members and their CPA firms. This goal serves the public interest and enhances the significance of the CPA.
  • Our Peer Review Rating

    When a CPA firm receives a report with a peer review rating of "pass", the peer reviewer has concluded that nothing came to his or her attention that the CPA firm’s work was not performed and reported on in conformity with applicable professional standards in all material respects. This is the highest rating that can be received after a peer review. Our latest peer review was issued October 29, 2013 and our rating was a "pass". In the peer review report, we met all acceptable practice standards, and complied within the parameters as established by the regulatory body of the Cal Society of CPAs. We do all this to benefit you, our valued client.
  • More About the Scoring...

    A report with a “pass” rating will be issued when the team captain concludes that the firm’s system of quality control over its accounting and auditing practice is suitably designed, and the firm has complied with its policies and procedures so that it has reasonable assurance of performing and reporting in conformity with applicable professional standards. A “pass” report replaces the old unmodified reports—both those with and without a letter of comment. The letter of comments has been eliminated.

    A report of “pass with deficiencies” will be issued when the team captain concludes that the firm’s system of quality control over its accounting and auditing practice is suitably designed and the firm has complied with its policies and procedures so that it has reasonable assurance of performing and reporting in conformity with applicable professional standards except for a certain deficiency or deficiencies that are described in the report along with recommendations for improvement. The deficiencies identified will be conditions noted by the peer reviewer that relate to the design of, or compliance with, the firm’s quality control system and create a situation where the firm would have less than reasonable assurance of performing or reporting in conformity with professional standards. The firm will then provide a formal letter of response, indicating what it intends to do to correct the deficiencies noted in the report. A “pass with deficiencies” report replaces the old modified report.

    A report with a “fail” rating will be issued when the team captain has identified significant deficiencies and concludes that the firm’s quality control system is not suitably designed or has not been complied with to provide the firm with reasonable assurance of performing and reporting in conformity with professional standards. These deficiencies and appropriate recommendations for improvement will be described in the report. The firm will then provide a formal letter of response, indicating what it intends to do to correct the deficiencies noted in the report. A “fail” report replaces the old adverse report.


 

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