Peer review

A peer review is an examination of the audit work of a CPA firm by another CPA firm. These reviews are conducted under the rules of the governing state board of accountancy, and are intended to spot any instances in which audit quality is in need of improvement. In order to pass a peer review, a CPA firm must maintain adequate documentation of its audits. If a flagged CPA firm does not correct the issues found, the applicable board of accountancy can revoke its license to practice or impose lesser penalties, such as fines, reprimands, and additional continuing professional education.