Peer Review Checklists 

The AICPA generally updates Peer Review Checklists annually.   Your firm should consider using the most up-to-date and relevant checklists as part of your firm's Inspection and Quality Control Programs. Taking this step may help you improve the quality of your governmental audit and attestation engagements.

We have summarized below the checklists that will be applicable to your governmental, health care, and not-for-profit organization financial statement audits, your Yellow Book and Circular A-133 audits, and your HUD engagements.

Also, click here to access an archived GAQC member Web event titled, AICPA Peer Review: What is Changing and How Being a Peer Reviewer Can Enhance Your Practice.  This event is intended to provide you with information about the AICPA Peer Review Program and how the program is an important aspect of enhancing audit quality.  Additionally, the event provides information about some recent changes in the program in response to the federal study on single audit quality.  Information is also provided about how performing peer reviews can be beneficial to your audit practice.

New Checklists for 2010

Note that the following checklists were developed for use by reviewers of single audits.   In light of the results of the federal study on single audit quality (PCIE report), the AICPA  Monitoring Task Force (PMTF) has been studying the results of the PCIE report to determine ways in which the peer review process can aid in enhancing the quality and performance of Circular A-133 audits by member firms. The PMTF met with the various federal agencies that perform quality control reviews (QCRs) to help the AICPA better understand the QCR processes across federal agencies and to assist the inspectors general in better understanding the peer review process. The PMTF made several recommendations to the Peer Review Board on enhancing the peer review processes for single audits.   One recommendation resulted in the issuance of the following 2 checklists which have divided the previous single audit checklist into two parts.   Part A focuses largely on deficiency areas cited in the PCIE report.   Reviewers using Part A are instructed that failures to conform to professional standards in the areas in Part A are seen by federal Inspectors General as resulting in substandard audit.   Therefore, a failure to properly perform audit procedures in one of more of the areas covered in Part A will result in an engagement that has not been performed in accordance with Government Auditing Standards in all material respects.   If the reviewer determines there was a failure to reach an appropriate conclusion on the application of professional standards in all material respects after completing Part A, the reviewer is instructed to then consider whether the expansion of the scope of the peer review is necessary.

• NEW Part A Supplemental Checklist for Review of Single Audit Act/A-133 Engagements focuses on the audit areas noted by the PCIE report as most frequently not being performed in accordance with professional standards. These areas include major program determination, documentation of compliance testing, audit findings, sampling, materiality at the major program level and SEFA reporting issues.
• NEW Part B Supplemental Checklist for Review of Single Audit Act/A-133 Engagements includes other areas specific to A-133 engagements. These areas include planning, reporting, other audit issues, and program specific audits.

Checklists for 2010

• Governmental Audit Engagement Checklist. The questions in this checklist emphasize reporting matters and general procedures ordinarily performed by an independent auditor in the audit of financial statements of state and local governmental units.
• Not-for-Profit Audit Engagement Checklist. This checklist is for auditing and reporting on financial statements of not-for-profit organizations.
• Supplemental Checklist for Review of Engagements of Health Care Organizations. This checklist emphasizes reporting matters and general audit procedures performed in the preparation of financial statements and audits of health care organizations.
• Supplemental Checklist for Review of Audits of HUD Engagements. This checklist is for use in HUD engagements performed in accordance with the Consolidated Audit Guide for Audits of HUD Programs.
• Supplemental Checklist for Review of Audit Engagements Performed in Accordance With Government Auditing Standards (Yellow Book) July 2007 Revision. This checklist is applicable to both not-for-profit and government entities.
• Supplemental Checklist for Review of Agreed Upon Procedures and Other Attestation Engagements Performed in Accordance With Government Auditing Standards (Yellow Book) July 2007 Revision. This checklist is applicable to both not-for-profit and government entities.