Did you know that audit firms get audited by their peers? Just when you think that we as auditors don’t understand what it’s like to be on the other side of the table . . . think again!
Firms in the practice of public accounting and members of the American Institute of Certified Public Accountants (AICPA), are required to have a “peer review” performed every three years on a selection of engagements that they have performed over a certain period. A peer review is a quality control standard to ensure that the audits we have completed were performed in compliance with the standards and we are graded on the quality of the engagements. Just like an audit, it’s a learning experience for all involved and a way to share experiences, challenges and work together for solutions.
We are also asked to prepare all our “PBCs” and send them to the peer reviewer, sit down for interviews with them and review the final reports with them. So, when you think we don’t understand what our clients are going through . . . don’t worry – we do understand!
In case you’re wondering, on Henry+Horne’s most recent peer review, we received a “pass” grade, which is the highest grade available.
Cailee Lewis, CPA