1. When is my firm required to have a Peer Review and is proof of
completion of Peer Review required in Kansas?
Any firm, or unincorporated sole practitioner,
that issues its first report subject to Peer Review
(audit, review, agreed upon procedure, forecast) is
required to notify the Board, on a form provided by
the Board, of the issue date of the report, type of
report, and year-end date of the client, and have
a peer review completed within 18 months of the first
report issued. Here is a link
to the Peer Review Form
Thereafter, proof of completion of Peer Review every three years is
required for registered firms and unincorporated Kansas sole
practitioners who are subject to Peer Review. Proof of completion is
provided with firm registration.
2. What is considered to
be "proof of completion” of Peer Review?
The Board requires that a Peer
Review letter of completion be provided. This is the letter issued by
the administering entity that states the firm has completed the Peer
Review process and issues a due date for the next Review.
3. How long is my Peer Review
Letter of Completion valid?
Beginning with Peer Reviews
accepted by the Report Acceptance Body after November 15, 2002, the
Letter of Completion is valid until the next Peer Review is due. Peer
Reviews accepted prior to that date are valid for three years from the
date of the letter of completion.
4. What if I can’t provide a
letter of completion, will the Board accept anything else?
The Board will accept, in lieu of a letter of
completion, a letter from the administering entity that the Peer Review
is “in process”. This letter can only be issued if the Peer Review is
completed by the Team Captain, the Report, letter of comments and
letter of response (if applicable) have been provided to the
If an “in process” letter is submitted, the
Board will issue a “conditional” firm registration or “conditional”
permit renewal, whichever is applicable, subject to providing the
necessary letter of completion by a specified date.
5. Can the Board obtain the
results of my Peer Review?
Yes. Beginning with Peer Reviews
accepted by the administering entity’s Report Acceptance Body after
December 31, 2001, the Board may inquire as to the type of Peer Review
Report issued; i.e., unmodified (pass), modified (pass with
deficiencies), or adverse (fail). If a firm has received a modified
(pass with deficiencies or adverse (fail) opinion on their Peer Review
Report, then the Board may request a copy of the Peer Review Report,
letter of comments, letter of response and any follow-up requirement
letters issued in connection with the Peer Review.
6. Can the Board take
disciplinary action over the outcome of my Peer Review?
Yes. Beginning with Peer Review
Reports accepted by Report Acceptance Bodies after December 31, 2001,
if a firm receives an Adverse (Fail) report, or if a firm has received
2 modified Peer Review Reports during 12 consecutive years, the Board
may limit the scope of practice of attest services of a firm or permit
holder if the Board determines that the firm or person failed to comply
with GAAP, GAAAS and other recognized authoritative technical
The Board may also take action if a firm has
failed to abide by remedial measures required buy a Peer Review
Committee or the Board.
What about the new Peer Review Facilitated State Board Access Program?
Kansas is participating in the new AICPA Peer
Review State Board Access Program which will allow Boards of
Accountancy to access Peer Review information via a secure website,
should the firms choose to participate in the program. This new
process WILL NOT
replace the Board's current Peer Review submission requirements.
Therefore, firms will need to continue to comply with the Board's
requirements unless otherwise notified by the Board.