(a) In order to balance the public's risk with the
public's protection, the board is requiring peer review of firms providing
financial reporting services. In implementing the peer review program,
the board will consider the level of risk to the public of various
attest services and require different levels of peer review based
on those risks. Those firms that provide limited financial statement
services can elect to perform non-attest preparation engagements under
SSARS which do not require peer review.
(b) A firm whose only level of financial reporting
is preparation engagements under SSARS must request on its annual
license renewal an exemption from peer review.
(c) A firm that performs the following is subject to
Engagement Peer Review.
(1) Compilations with disclosures or omitting substantially
all disclosures and/or reviews of financial statements performed in
accordance with SSARS. If the firm performs both an attest service
and a preparation engagement(s), then the preparation engagement(s)
is also subject to review and could be selected for peer review.
(2) Reviews and/or agreed-upon procedures engagements
performed in accordance with SSAEs, or alternate wording engagements
performed under the SSAEs, other than examinations.
(d) A firm that performs the following is subject to
a System Peer Review.
(1) Engagements performed in accordance with SAS;
(2) Engagements performed in accordance with Government
Auditing Standards (GAS);
(3) Examination engagements performed in accordance
with SSAEs;
(4) Audits of non-SEC issuers performed in accordance
with PCAOB standards; or
(5) Attestation of non-SEC issuers performed in accordance
with PCAOB standards.
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