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Division of
Professional Regulation

Accounting Peer Review



Peer Review Information

Overview
The information below describes the peer review requirements for Delaware-licensed Firms (CPA and PA) and CPA Permit holders who issue compilation reports to the public. CPA and PA Firm Permit that provide attest and/or compilation services on or after July 1, 2017 must:

  • be enrolled in a Board-approved peer review program
  • comply with the program’s standards and guidance
  • complete a peer review every three years as a condition of license renewal.
  • submit proof of enrollment.

For more information, see Section 10.12 of the Board’s Rules and Regulation.

A CPA Permit holder who issues compilation reports to the public, other than through a CPA or PA firm, must be enrolled in a Board approved peer review program (see Section 10.12.7.4 of the Board’s Rules and Regulation.)


Complying with New Requirements

Starting with the 2019 renewal, firms who have performed attestation and/or compilation services on or after July 1, 2017 must have completed a peer review within the preceding three years.

  • Firms not already participating in a Board-approved peer review program must enroll, schedule, undergo, and complete their first peer review by June 30, 2019.
  • A firm’s initial review is usually due 18 months from the date it enrolled (or should have enrolled).
  • Once enrolled, firms must schedule, undergo, and complete subsequent peer reviews to comply with the standards and guidance of the program.
  • Firms already enrolled in, and complying with, a Board-approved peer review program will keep their current peer review due dates and year-ends. For the 2019 renewal, these firms must have completed a peer review between July 1, 2016 and June 30, 2019.


Board-Approved Programs

  • The American Institute of Certified Public Accountants (AICPA) is a Board-approved sponsoring organization and its peer review program, the Pennsylvania Institute of CPAs (PICPA), is an approved program. The PICPA website is https://www.picpa.org/keep-informed/peer-review. Contact the PICPA Peer Review Team at peerreview@picpa.org or (267) 675-6252.
  • The Board may approve other peer review programs. For more Information, see Section 10.12.7.4 of the Board’s Rules and Regulation.


Peer Review Results and Submission

For reviews scheduled on or after July 1, 2017, the table below shows the documents that a firm must submit and when they are due. The firm must authorize the sponsoring organization to give the Board access to its documents on a secure website such as AICPA’s Facilitated State Board Access (FSBA) website.

DOCUMENTS TO SUBMIT DUE DATE
  • Peer review report that the sponsoring organization has accepted
  • Firm’s letter of response accepted by the sponsoring organization, if applicable
  • Acceptance letter from the sponsoring organization
within 30 days of the sponsoring organization’s acceptance
Signed letter(s) accepting the documents, with the understanding that the firm agrees to take any actions that the sponsoring organization requires, if applicable within 30 days from the date the firm signs the letter.
Letter signed by the sponsoring organization notifying the firm that required actions have been appropriately completed, if applicable within 30 days of the date of the letter

For more information about FSBA, see https://tinyurl.com/access-fsba.


Frequently Asked Questions

How does my firm get a Peer Review Program started?
Go to https://www.picpa.org/keep-information/peer-review or contact the PICPA Peer Review Team at peerreview@picpa.org or (267) 675-6252.

What type of engagements require a review under the state of Delaware’s licensing requirement?
Firms that perform attestation and/or compilation services must be enrolled in the board-approved peer review program.

I have a CPA permit and I issue compilation reports to the public, do I need to be enrolled a board-approved peer review program?
CPA Permit holder who issue compilation reports to the public other than through a CPA or PA firm must be enrolled in the board-approved peer review program.

What if my firm only provides preparation service engagements?
Firms that only prepare service engagements are not required to enroll in a peer review program. However, if your firm enrolls in a Board-approved program anyway, the firm must comply with the program requirements.

What if my firm only performs tax and consulting services?
Tax and consulting services are not subject to the peer review requirement under Delaware’s licensing requirements.

What period will be covered by the peer review?
The scope of the peer review include all accounting and auditing engagements with financial statement periods ending during a 12-month period (i.e., the peer review year) that you and your peer reviewer agree on. The peer review year generally ends six months before the firm’s peer review due date.

Who will assign my firm’s peer review due date?
The rules for administering a Board-approved peer review program authorize the sponsoring organization to assign peer review due dates. To determine an appropriate due date, the sponsoring organization may consider the number and types of engagements to encompass in the review, the year-ends and report dates of the engagements, and state licensing requirements. A firm’s subsequent peer review ordinarily will be due three years and six months from its prior peer review year-end.

How long does the peer review process take<?
Peer review is a multi-stage process: enrollment and scheduling, performance and report submission, technical review and committee acceptance. The time between the start of your review and acceptance by a committee of your peers can take anywhere from three to six months.

What if my firm needs an extension?
The Board may accept extensions granted by the sponsoring organization if the firm notifies the Board within 14 days from the date of the sponsoring organization’s letter granting the extension.

How much does peer review cost?
Review costs vary depending upon the size and nature of the firm’s practice. Firms and sole practitioners enrolled in a Board-approved peer review program are expected to pay:

  • annual administrative fee and any other surcharges to the sponsoring organization, plus
  • cost of the peer review to the peer reviewer.


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