Recognizing the public's interest in reliable financial statements and the importance the public attaches to reports by CPAs on those statements, the American Institute of Certified Public Accountants (AICPA) requires its member firms to undergo a peer review. A peer review is a periodic outside review of a firm's quality control system in accounting and auditing and is also known as the AICPA's practice monitoring program. Its aim is to maintain and improve the quality of the accounting and auditing services performed by member firms. The AICPA Peer Review Program is dedicated to enhancing the quality of accounting, auditing and attestation services performed by AICPA members in public practice. Firms enrolled in the AICPA peer review program have a peer review completed every three years. There are three types of peer reviews: system, engagement and report reviews. During a system review a qualified reviewer visits the firm; examines how its quality control system works; tests relevant records and files; inspects the financial statement, reports and working papers for a representative sample of engagements; discusses the findings at an exit conference; and issues a report, as well as a comment letter, if necessary. The firm responds to the report and comment letter regarding what has been done or what the firm will do to address the reviewer's comments. A firm that issues only compilation or review reports will have an engagement peer review of the reports and the related historical or prospective financial statements, as well as required documentation, on a limited number of engagements. A firm that performs compilations that omit substantially all disclosures as its highest level of service must have a report review. The Ohio CPA Society administers the Peer Review Program for AICPA members with firms in Ohio. Kolita & Company have earned three consecutive "unqualified" peer review reports.
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