AICPA Peer Review Board September 27, 2013 Open Session ...

AICPA Peer Review Board
September 27, 2013 Open Session Meeting Highlight
Meeting Participants
Board Members
AICPA Staff
Richard W. Reeder, Chair
Fran McClintock, Staff Liaison
Frank R. Boutillette
Jim Brackens
Betty Jo Charles
Rachelle Drummond
Anita Ford
Kim Ellis
Scott W. Frew (via telephone)
Gary Freundlich
G. William Graham Laurel Gron (via telephone)
Richard W. Hill
Tim Kindem
Richard Jones
Sue Lieberum
Henry J. Krostich (via telephone) LaVonne Montague (via telephone)
Toni Lee-Andrews
Donna Roethel
John J. Lucas (via telephone)
Susan Rowley (via telephone)
Michael McNichols
Beth Thoresen
Randy L. Milligan
Jodi L. Rinne
Guests Participating Via Telephone
Robert Rohweder
See Exhibit
Michael Solakian
Steven K. Stucky
Randy Watson
Absent
James Ahler
Purpose of the Meeting
Regularly scheduled meeting to review and discuss proposed guidance and other topics. Mr.
Reeder called the meeting to order at 10:00am EST.
Discussion Points
1.1 Welcome Attendees and Roll Call of the Board
Ms. McClintock performed the Board roll call and welcomed all Board members and guests.
1.2 Approve Quality Control Related Guidance
A. Approve QCM Guidance Changes
Mr. Boutillette requested certain portions of the guidance related to QCM reviews be reviewed
and discussed.
Decisions, Next Steps and Action Items:
The Board approved the series of proposed changes as presented.
Changes will be communicated to administrators via an Administrative Alert and an AE biweekly
call.
The revisions will be communicated via a Peer Review Alert.

The revisions will be included in the relevant sections of the Program Manual published as
part of the January 2014 Peer Review Program Manual.
B. Revisions to Quality Control Policies and Procedures Questionnaire
Mr. Reeder requested that certain portions of the aforementioned questionnaire be revised in an
effort to make the questionnaire more comprehensive.
Mr. Reeder asked if anyone wanted to discuss this Agenda Item and heard no such requests.
Decisions, Next Steps and Action Items:
The revisions to the guidance were approved as presented.
The revisions will be communicated via a Peer Review Alert, which was also approved.
The revisions will be included in the relevant sections of the Program Manual published as
part of the January 2014 Peer Review Program Manual.
Changes will be communicated to administrators via an Administrative Alert and an AE biweekly
call.
1.3 Discuss Potential Guidance on Tone at the Top
Ms. Ford initiated a preliminary discussion to solicit feedback from stakeholders regarding
potentially drafting/revising guidance related to issues identified with „Tone at the Top.‟
Examples of Tone at the Top issues were presented with the Materials. Ms. Ford requested
ideas for potential guidance from attendees. Hearing none, Ms. Ford encouraged all
stakeholders to provide their suggestions directly to AICPA staff.
1.4 Discuss Potential Guidance Changes on Broker-Dealers
Ms. Ford initiated a preliminary discussion to solicit feedback from stakeholders regarding
potentially drafting/revising guidance related to the administration of reviews of firms that
perform audits of broker-dealers. Effective in 2014, audits of broker-dealers will be performed in
accordance with auditing standards prescribed by the PCAOB. Accordingly, barring any
revisions to the Standards, the review of firms that perform these audits will be required to be
administered by the NPRC. Ms. Ford requested suggestions for potentially revising guidance.
Hearing none, Ms. Ford stated the Board will continue to solicit feedback in the coming months.
1.5 Approve AICPA PRB Annual Oversight Report
Mr. Watson presented the annual oversight report for approval.
Decisions, Next Steps and Action Items:
The Board unanimously voted to approve the report as presented provided an additional
sentence be added to the „Results of AICPA PRP‟ section on page 9. This sentence
read as, “As clearly depicted on Exhibit 4, the percent of other than pass reports in
engagement reviews has increased since the implementation of new standards in 2011.”
1.6 Operations Director’s Report
Ms. Thoresen provided an update on several operational initiatives:
Online MFC forms went live as of July 1. The Pilot program went live in late 2012 and
produced some enhancements to the program. Additional communications have been
issued in an effort to provide additional training tools for users. The online MFC forms
are scheduled to be available to non-AICPA members in the fall of 2014.

Additional technological initiatives include the integration of PRISM with the NetForum
database. Additionally, self-service firm enrollment and firm structure change forms will
available online in the fall of 2014. Finally, in an effort to protect member information,
users will be logged out of the AICPA website after 20 minutes of inactivity.
Blogs are currently in development to promote Peer Review both inside and outside of
the profession.
Customer satisfaction survey results remained consistent with the prior year. Overall
satisfaction of the Peer Review Program remained the same as the prior year at 87
percent. Ninety percent of respondents were satisfied with the NPRC. 130 open ended
comments were provided with common themes being frustrations with the frequency of
changes, peer review checklists and change management around online MFCs.
Decisions, Next Steps and Action Items
None.
1.7 Report from State CPA Society Executive Directors
Mr. Jones informed the Board that there has not been a meeting since the August Providence
meeting, but one will occur prior to the AICPA Fall Council on October 20 th through the 22nd.
Jim Brackens is scheduled to provide a Peer Review update at that meeting.
Decisions, Next Steps and Action Items
None.
1.8 Update on National Peer Review Committee
Ms. Charles provided an update on NPRC activities since the August 2013 Board meeting,
including:
One RAB call and one full NPRC meeting were held, during which four peer reviews (all
Pass Reports) were accepted.
At its September 5, 2013 meeting, the NPRC 2012 Annual Report on Oversight was
presented, approved and issued; the 2012 NPRC Internal Inspection Report was
presented and approved (these documents are included in the agenda materials and on
the NPRC website; and a revised NPRC Technical Reviewers Checklist and Form C-1
were presented. Staff will include these revised documents in the NPRC PPM that will
be presented for approval during the December NPRC Meeting.
An in-person meeting is scheduled for December 12, 2013 in Washington DC during
which a number of peer reviews that require full committee approval are expected to be
considered. A conference call has been scheduled for December 14, 2013 in case all
the agenda materials are not covered during the December 12, 2013 meeting. A
conference call has also been scheduled for February 2014.
Decisions, Next Steps and Action Items
None.
1.9 For Informational Purposes
A. Report on Firms Whose Enrollment was Dropped or Terminated
A listing of firms dropped from the AICPA Peer Review Program for non-cooperation between
July 19, 2013 and September 11, 2013 as well as a listing of firms whose enrollment was
terminated from the AICPA Peer Review Program was provided in the materials.
B. Standards Task Force Future Agenda Items

Ms. Ford discussed future agenda items to be covered by the Standards Task Force. This
includes three agenda items originally planned to be discussed at the September 26 Task Force
meeting. Ms. Ford instructed attendees that if anyone has questions regarding future agenda
items and their prioritization, they should inform the Task Force. No questions ensued.
C. Education and Communication Task Force Future Agenda Items
Ms. Lee-Andrews discussed future agenda items to be covered by the Education and
Communication Task Force. This includes the status of the 2014 Conference as well as
updates on training coursed and training materials and programs. No questions ensued.
D. Oversight Task Force Future Agenda Items
Mr. Watson discussed future agenda items to be covered by the Oversight Task Force. This
includes the Annual Report on Oversight and the timing of biennial visits of Administering
Entities. No questions ensued.
1.10 Future Open Session Meetings
Ms. McClintock reviewed the upcoming meetings listed in the agenda materials. Mr. Brackens
informed the Board that the January Meeting was rescheduled to January 30 , 2014 and will be
held in New York City.
The meeting was adjourned at 11:00 a.m. EST.

Exhibit 1: Peer Review Board Open Session
Guests Participating Via Telephone
September 26, 2013
Name
Pam Lemire
Jennifer Winters
Joseph Scheidler
Grant Simmons
Mary Kline-Cueter
Kellie Boyle
Wendy Garvin
Stacey Lockwood
Judy Chaplin
Julie Phipps
Linda McCrone
Nichole Favors
Michael Jack
Ryan Murnick
Heather Reimann
Jerry Cross
Abby Dawson
Sharon Romere-Nix
Catherine Schweigel
Tracey Golden
Alex Schillaci
Organization
New England Peer Review, Inc.
NYS Education – NYS CPA Board
IN CPA Society
Government Accountability Office
The Isis Group, PC
Nathan Wechsler & Company
Tennessee Society of CPAs
Louisiana Society of CPAs
Iowa Society of CPAs
Washington Society of CPAs
California Society of CPAs
Indiana Society of CPAs
IN CPA Society
Illinois CPA Society
PICPA
TSCPA
F.G. Briggs Jr. CPA Professional Association
Thomson Reuters
CliftonLarsonAllen LLP
Deloitte & Touche LLP
Deloitte & Touche LLP