Peer Review Alliance Forum - Virtual-2026 Forum

2026 Forum – Participant Slides

Pdf Summary

This document is a 2026 AICPA Peer Review update covering major program changes, quality management (QM) impacts, common review issues, and resources for reviewers. It explains the Peer Review Program’s five proposed strategic initiatives: modernizing the operating model, building a sustainable reviewer pool, anticipating emerging assurance trends, strengthening stakeholder engagement, and reimagining practice monitoring.<br /><br />A major theme is the profession’s transition to QM standards, especially SQMS 1 and SQMS 2. The presentation outlines how QM affects engagement reviews and system reviews, including new report wording, representation letter changes, split-year guidance, and updated checklists. It stresses that engagement reviews do not require reviewers to ask whether QM was designed or implemented, while system reviews must evaluate QM design, implementation, and operating effectiveness. Split-year reviews require attention to both prior QC and current QM standards.<br /><br />The update highlights emerging areas such as alternative practice structures, AI and automation, and SOC 2 reporting. It introduces the Annual Practice Questionnaire, which all enrolled A&A firms must complete in PRIMA, and notes that failure to submit may lead to noncooperation consequences. The document also discusses how peer reviewers should assess APS relationships, independence documentation, and risks from overreliance on third-party SOC platforms.<br /><br />Another major section focuses on nonconforming engagements. It provides case studies for compilations, reviews, and audits, emphasizing recurring problem areas such as risk assessment, control documentation, accounting standard changes, and reporting departures. The document explains how nonconformity affects engagement versus system review ratings differently.<br /><br />Finally, it offers guidance on documentation quality, systemic cause analysis, monitoring, SKE and safeguards in single audits, and reviewer resources such as webcasts, forums, alerts, and hotlines.

Keywords

AICPA

Peer Review

Quality Management

SQMS 1

SQMS 2

Engagement Reviews

System Reviews

Annual Practice Questionnaire

Nonconforming Engagements

SOC 2