Kansas Board of Accountancy

Peer Review

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 administering entity.

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 standards.

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.

7.  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.


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