Peer Review Program Manual 26 revised the Standards for Performing and Reporting on Peer Reviews(Standards) and the Interpretations as follows:

• The first sentence in the letter of comments for system reviews has been revised to appropriately reflect that the system of quality control was reviewed for the period in effect. Similar revisions were made to the exhibit letters of response.

• The sample signature areas for reports and letters of comments have been revised to remove examples that would be associated with CART system reviews (which no longer exist). Other revisions providing clarity to the signature area were made as well.

• Letter of response exhibits were revised to more accurately reflect what documents are being responded to such as not indicating a response to an LOC when an adverse report is issued (there are no LOCs when adverse reports are issued). Other similar revisions were made as well.

• Elimination of Interpretation 14 and incorporating it in the actual Standards. This relates to an engagement review and documentation required by “professional standards”, rather than only the “Statements on Standards for Accounting and Review Services and the Statements on Standards for Attestation Engagements”.

• On an adverse system review report, the opinion paragraph was revised by replacing “and” with “or” as highlighted here regarding the “…auditing practice not being  designed to meet the requirements of the quality control standards for an accounting and auditing practice established by the AICPA  OR  was not complied with during the year then ended…”

• Some exhibits of deficiencies in modified and adverse reports were revised to identify the industry and level of service for engagements deemed substandard.