SSARS #21 and peer review

I am a CPA on NYS and I am not a member of the AICPA. NYS does not require a peer review for compilations however SSARS # 21 does. Does this requirement under SSARS # 21 only apply to AICPA members? Or does the fact that I am issuing a report performed under the SSARS require me to have a peer review? I'm confused

Hi Theresa. I would call the AICPA. I have not been in Peer Review for about 3 years now, so am not sure what the rules are. It seems to me that the four sections of SSARS #21 might have a different Peer Review requirement depending if it is a Section 60/70/80 or 90 engagement. Section 80 or 90, yes. Section 70, no?

Hi Theresa,

From the AICPA Peer Review Program Q&A Update #14, January, 2015:

Does my firm have to enroll in a peer review program if the only engagements it performs are compiled financial statements that are not expected to be used by a third party (management use only)?

Under the AICPA bylaws, firms (or individuals in certain situations) are only required to
enroll in an Institute approved practice monitoring program when the engagements they perform are within the scope of the AICPA’s practice monitoring standards and issue reportspurporting to be in accordance with AICPA professional standards. Therefore, in the case where the compilations for management’s use only are the highest level of service performed by the firm, they would not be required to enroll in the AICPA Peer Review Program because no report is issued. AR sec.80 requires the accountant to document the understanding of the engagement with the entity through the use of an engagement letter.

However, firms must check with their Board of Accountancy peer review requirements as some require firms to enroll and have a peer review in this circumstance.

For firms already enrolled in the AICPA Peer Review Program, compilations for management use only
would fall within the scope of peer review.

Practitioners should keep in mind that ARC Section 80, issued as part of SSARS 21 and effective for
compilation engagements for periods ending on or after December 15, 2015, always requires a report.

I called the AICPA and they told me to check with my State society as I am bound by the requirements of my state. NYS does not require a peer review for compilations . Since I am not a member of the AICPA I believe I do not need a peer review to perform a compilation in NYS. Do you agree?

I'm licensed in PA, and I believe the requirements are similar to NY. PA does not require peer reviews on any type of compilation; only reviews & audits. I contacted them last year (PA) to ask them the exact same question. I was told that if I'm not an AICPA member, I wouldn't be subject to the comp peer reviews.

Great thanks so much for the info and confirming my understanding !! Thanks for all the replies also !!

Hi theresa. I am a ny cpa. There is a small firm exemption from peer review by the ny state education department for compliations and reviews. However please go to the Web site and review the cpe requirements in new york. If you are preparing compilation reports you have to have 40 hours of accounting and auditing cpe over a 3 year period.