CTCPA Peer Review News

CTCPA Staffing Changes

Bonnie Olivieri retired from her work as the CTCPA’s Peer Review Administrator this spring. Bonnie’s efforts on behalf of and pride in the program will be sorely missed. Lynette Lindner and Julie McNeal have stepped in to learn the program and aid you with its requirements.

Major Changes to the AICPA’s Peer Review Program – PRIMA

In 2017, the AICPA stopped the paper version of Peer Review and moved to PRIMA, a cloud-based program. Firms are required to use PRIMA to provide their firm’s staffing and engagement summary, scheduling form, and workpapers. Lynette and Julie are available to help you navigate PRIMA

One purpose of the program is to increase consistency between administering entities throughout the country. Another purpose is to increase timeliness of reviews.

Timeliness of Reviews: Extensions required 60 days in advance of the peer review due date.

The Peer Review standards allow due date extensions only when requested 60 days in advance of the firm’s due date. Moving toward conformance with the standard, the CTCPA’s Peer Review Extension Subcommittee weighed the benefits of compliance against placing added pressures on firms and peer reviewers.

The subcommittee acknowledges our current change environment and have been granting extensions requested inside the 60-day window; however, in our efforts to comply with AICPA benchmarks, we need to revisit our position on granting extensions.

For the balance of 2018, the extension subcommittee will continue to evaluate each request on a case-by-case basis.

Beginning January 1, 2019, extension requests received less than 60 days before the peer review due date will be given greater scrutiny. The CTCPA Peer Review Extension Subcommittee will apply the AICPA guidance, available below:

If your firm cannot complete its review by the due date, please request an extension in PRIMA before the due date. Extensions requested after your review’s due date will not be granted. If possible, extensions should be requested at least sixty days before the due date. However, it is plausible that extensions may be needed due to unforeseen circumstances within sixty days of the due date. Your explanation to the AE should explain why your firm cannot complete its review on time and offer an alternative due date for the review. The AE considers extension requests on a case-by-case basis. Extensions are not granted simply because a firm believes it needs more time to prepare for the review.

In certain circumstances extension requests for due dates may be granted by the AEs, however, the extensions may not be recognized by your state board of accountancy or other regulators. Government Auditing Standards require a firm to have an external quality control review every three years. This three-year period begins with the date your firm starts fieldwork on its first engagement under GAO Standards. Subsequent reviews under GAO Standards should be completed within three years after the issuance of the prior peer review report. If your firm performs governmental audits, don’t forget to take these requirements and potential changes into account when you request an extension of your firm’s due date. The GAO and state boards of accountancy are not required to recognize extensions granted by the AICPA.