AICPA Special News Update - Dec. 15, 2014 

AICPA Releases Vision of the Future of Practice Monitoring 
Published December 15, 2014

Special Report: AICPA Releases Vision of the Future of Practice Monitoring
AICPA News Update
December 15, 2014 Volume 21 No. 46
 
Special Report
New Concept Paper Seeks Input on Transformation of Peer Review
  Reimagining the CPA profession’s practice monitoring program is the subject of a new concept paper released today by the AICPA:Evolving the CPA Profession’s Peer Review Program for the Future: A provocative vision of what practice monitoring could become. The paper paints a picture of how the 35-year old Peer Review Program might be transformed into an ongoing, near real-time practice monitoring program in the not-too-distant future. Developed after two years of research and brainstorming by task forces created on the advice of AICPA’s governing Council, the concept represents the long-term efforts of the Enhancing Audit Quality initiative. 

Concept Paper Outlines Thought-Provoking Vision

The program described in the concept seeks to increase public protection through enhanced audit effectiveness by:
  • Highlighting potential quality risk indicators and detecting engagement issues earlier
  • Reviewing all firms that perform accounting, auditing and attestation engagements
  • Monitoring all engagements subject to review
A key aspect of the concept is a technology platform that joins with human oversight to provide near real-time, continuous analytic evaluation of engagement performance. Monitoring would initially be conducted by the firm itself, but, the concept explains that eventually, external AICPA-engaged practice monitors would assist firms in addressing quality issues when firms fail to do so.

The paper explains that the program would be developed and implemented in multiple phases, starting with a voluntary pilot group of small, medium and larger firms. Future phases would eventually transition from voluntary to mandatory participation. 

Your Input is Critical

At this early stage in the concept’s development, it’s crucial that stakeholders from across the profession read the paper and provide insights on this vision for evolving practice monitoring.

As with the EAQ initiative’s discussion paper released during the summer, the AICPA has created a community (aicpa.org/futurepracticemonitoring) where stakeholders in the peer review process can post comments, respond to others’ comments, answer specific questions from the paper and participate in discussions. Comments on the Future of Practice Monitoring concept paper may also be submitted by sending an email toprsupport@aicpa.org. Feedback is requested by June 15, 2015.

Learn More

To learn more about the concept paper, read this Journal of Accountancy article or visit this Future of Practice Monitoring resource page ataicpa.org/futurepracticemonitoring, which features related news and information, including this video. 

Every CPA contributes to the profession’s commitment to quality. The peer review program supports the profession’s drive toward quality and protecting the public interest. Please help to shape the vision for the next generation of practice monitoring.


 
 

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