Peer Review Update - State Regulatory Update May 2017

May 12, 2017


Free Audit Documentation Tools Available

The most common audit issue found through the AICPA Peer Review Enhanced Oversight Program was a lack of adequate audit documentation. According to AU-C section 230, Audit Documentation, audit documentation should be sufficiently detailed to give experienced auditors who were not previously involved in an audit a clear understanding of the work performed, the evidence obtained and the conclusions reached.

More than 50 percent of all non-conformity detected in Enhanced Oversights was related to documentation, and more than 25 percent of all engagements selected for Enhanced Oversight were non-conforming because of inadequate documentation. In response, the AICPA developed a documentation toolkit available at, which is now live.

The toolkit contains free resources state regulators can share with their licensees to help them address common issues related to documentation. The resources include a working paper template with examples of well-documented analytical procedures and detail testing, an Employee Benefit Plan Audit Quality Center tool for SOC 1 tm consideration, a dual-purpose testing practice aid, an internal inspection aid and a PowerPoint presentation firms can use to train their staff on the Audit Documentation standard. The toolkit is a component of the Invigorate the Focus on Quality toolkit, which contains even more resources to assist firms with audit quality in their practices. 

The AICPA has also created memes about documentation to share on social media. The memes, suggested captions and further information can be downloaded here

Presentation on Evolution of Peer Review Administration 

The AICPA is seeking input from state boards of accountancy on an alternative proposal for administration to increase consistency, efficiency and effectiveness of the AICPA Peer Review Program. James Brackens, VP - Ethics and Practice Quality - Public Accounting, will present a summary of the proposal at the NASBA Regional Meetings. In addition, staff will be available to answer questions throughout the conference. 

Feedback on the revised proposal is requested by June 30, 2017. The AICPA then plans to release the final proposal on August 31, 2017.