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7
Connecticut CPA
g
May/June 2015
called in. The external monitoring
team would be similar to today's peer
review team, except that they would
be addressing issues in real time.
As conceived, periodic inspections
would be conducted by the external
monitoring team. Frequency of inspec-
tions would depend on whether the
firm performs high-risk engagements
and its record of resolving quality-
related issues through the continuous
analytical evaluation and practice
monitoring segments.
The oversight program details will be
developed in future phases.
"We are now operating in an environ-
ment where the level of oversight has
increased significantly when com-
pared to the peer review program 10
years ago," said 2015-2016 CTCPA
President-elect Bob Boudreau, a part-
ner with Buckley, Frame, Boudreau &
Co. in Killingworth and a Peer Review
Committee member. "Regulatory in-
volvement and input has contributed
to this change. Firms need to per-
form their own risk assessment related
to their audit practice to determine if
continued participation under the pro-
posed framework is appropriate."
Reporting Out Dashboards,
Internal Seals, and External Seals
Dashboards would be integral to the
process, allowing authorized firm
practitioners, AICPA-engaged practice
monitors, and external monitors a view
of"thefirm'scompliancewithperfor-
mance metrics over the various areas
subject to monitoring."
Internal seals are expected to illustrate
the firm's standing in the program to
thefirm'squalitycontrolandmanage-
ment and would provide access to the
dashboard.
External seals would be used to com-
municate "quality-related information
to the public through the AICPA and, if
desired,thefirm'swebsite."
"I support a process that will help iden-
tify, monitor, and resolve quality issues
on a real-time basis," said Kelleher. "At
the same time, I'm interested in under-
standing how the proposed changes
will impact the level of resources that
will be needed internally to comply
with the new practice monitoring pro-
cess; the new process must be scal-
able and cannot be cost prohibitive."
Ifyourfirmisenrolledinthepeerre-
view program, the CTCPA urges you
to participate in the dialogue. "There
is power in numbers," said Boudreau.
"Firms need to respond to help send
the message that the peer review pro-
gram has been and should always be
designedtoassistfirmswhilehelping
to ensure compliance with profes-
sional standards. There are a signifi-
cantnumberofcompetentsmallfirms
performing audit engagements. Their
voices can be equally important."
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View and comment on the concept paper at
www.aicpa.org/futurepracticemonitoring.
"I think it is imperative for
any firm enrolled in the peer
review program to understand
the potential impact of the
changes being proposed in the
concept paper."
CTCPA President Brian Kelleher
Partner, Fiondella, Milone & LaSaracina
u