21 NCAC 08M .0105        PEER REVIEW REQUIREMENTS

(a)  A CPA or CPA firm providing any of the following services to the public shall participate in a peer review program:

(1)           audits;

(2)           reviews of financial statements;

(3)           compilations of financial statements; or

(4)           any engagement to be performed in accordance with the Statements on Standards for Attestation Engagements.

(b)  A CPA or CPA firm not providing any of the services listed in Paragraph (a) of this Rule is exempt from peer review until the issuance of the first report provided to a client. A CPA or CPA firm shall register with the peer review program as listed in Paragraph (d) of this Rule within 30 days of the issuance of the first report provided to a client.

(c)  A CPA, a new CPA firm, or a CPA firm exempt from peer review that starts providing any of the services in Paragraph (a) of this Rule shall furnish to the peer review program selected financial statements, corresponding work papers, and any additional information or documentation required for the peer review program within 18 months of the issuance of the first report provided to a client.

(d)  Participation in and completion of the AICPA Peer Review Program, or a program that substantially complies with the AICPA Standards for Performing and Reporting on Peer Reviews, shall be required. The AICPA Standards for Performing and Reporting on Peer Reviews are incorporated by reference, including subsequent amendments and editions. This document may be accessed at https://us.aicpa.org/research/standards/peerreview at no cost.

(e)  CPA firms shall not rearrange their structure or act in any manner with the intent to avoid participation in peer review.

(f)  A CPA firm that does not have offices in North Carolina and that has provided any services as listed in G.S. 93-10(c)(3) to North Carolina clients shall participate in a peer review program.

(g)  Subsequent peer reviews of a CPA firm are due three years and six months from the year end of the 12-month period of the first peer review, unless granted an extension by the peer review program.

(h)  All CPA firms enrolled in the AICPA Peer Review Program shall also participate in the AICPA Facilitated State Board Access process.

History Note:        Authority G.S. 93-10(c); 93-12(8c);

Eff. January 1, 2004;

Amended Eff. January 1, 2014; February 1, 2011; January 1, 2006;

Readopted Eff. February 1, 2016;

Amended Eff. September 1, 2023.