Peer Review Services FAQ

    

1. Can Rollins and Rollins, CPAs perform my engagement peer review?

Yes, as long as your engagement peer review is administered by the AICPA through your state society, your firm does not perform agreed upon procedures (proforma or prospective financial statements), and we did not provide consultation services to your firm within 24 months of your peer review year end. Please contact us and we will be happy to schedule an exit conference date for your engagement peer review.

    

2. I have never had an engagement peer review. What do I do?

First, contact your state society. They will assist with your enrollment in the peer review program. Then, complete a packet called “Information Required for Scheduling Peer Reviews.” Send the completed packet to your state society to begin the peer review process. We prefer you send a copy to us as well. Your state society will then send a scheduling letter to us and your firm, confirming the timing of your engagement peer review and that you have selected our firm to perform your peer review. We will let you know what we need next from your firm within two business days of receiving the scheduling letter.

    

3. How do I complete my “Information Required for Scheduling Reviews” packet?

The Information Required for Scheduling Reviews is a questionnaire that is normally sent to you by your state society but can also be found on your state society’s website. It can be completed by typing on the form, which is in pdf format, or it can be printed off and completed by hand. This packet provides information about your firm and the types of engagements that your firm performs in order to determine the type of peer review you should have and whether the reviewer you select is qualified to perform the peer review. The packet is very self-explanatory and all questions that apply to your firm need to be completed. To complete the “Exhibit 1” section of the packet, you will need to call us to schedule a commencement and exit conference date. In that section, provide the information from our postcard pertaining to Rollins and Rollins, CPAs. A sample of “Exhibit 1” can be found on our website. After you have completed the “Information Required for Scheduling Reviews” you will need to send it to your state society as well as us. This will start your engagement peer review process.

    

4. What is your process and the timing for having an engagement peer review?

Once we receive the scheduling letter from your state society, we send you an engagement letter and a form known as an “Appendix A” Engagement Summary Form. You will need to fill out the “Appendix A” by indicating the types of industries you prepare financial statements for, the levels of services performed for each industry, the number of engagements for each industry at each level of service, and which owner is responsible for the engagements. Keep in mind that each set of financial statements you issued during your peer review year is counted as one engagement. Therefore, one client that you prepare monthly financial statements for will count as twelve engagements. Also, a management use only statement counts as a CO.

Once we receive the completed and signed “Appendix A,” we will send you a letter stating which engagements we have selected for review. Typically, we select two or three financial statements to review. We will also attach an “Appendix B” for you to fill out for each engagement we have selected for review, a Firm Representation Letter which you will need to sign and return to us, and an invoice.

Once we receive the Financial Statements and the completed Appendix B, we will begin reviewing the engagements as soon as possible.

After the Financial Statements have been reviewed, we will call you to request additional information, ask additional questions, or to discuss the results of the review.

If you have any items for further consideration, we will forward to you documents known as “Matters for Further Consideration” (MFCs) and “Findings for Further Consideration” (FFCs) outlining corrections we have determined need to be made or considered for future engagements. These documents will need to be read to determine if we have properly documented our discussions with you on the forms then you will need to sign and return those documents to us.

Once we have received from your firm everything we have requested over the course of our engagement, we will send the “final package” to you and to your state society. Your engagement peer review report will not be released until we have received all requested information, signed forms, and payment of our fees.

Your state society will notify both your firm and ours when the engagement peer review report is accepted and if any further action is required from your firm. You should not publicize the results of your review until you have received the acceptance letter from your state society.

    

5. What is the exit conference date for the engagement peer review?

For purposes of completing the “Information Required for Scheduling Reviews”, the commencement date and the exit conference date are the same date. You will need to call us in order to schedule this date. Generally, we set this date 30 days prior to your society due date. This date is basically the date we anticipate discussing the results with you and having your engagement peer review completed. Your state society will begin looking for the report relating to your engagement peer review on that date. Your peer review report must be sent to your state society within 30 days from the exit conference date or by your society due date, whichever is earlier.

    

6. What if I want my engagement peer review done before the exit conference date?

We will complete your engagement peer review as soon as we possibly can. The sooner you can get the required information to us, the sooner we can complete the review. The exit conference date is an estimated date of completion and a date you should be available to discuss your engagement peer review if we do not have it done earlier.

    

7. What do I need to send to you?

We may need additional documentation as the peer review progresses, but following is a list of the most common things we obtain from our clients

• 1. "Information Required for Scheduling Reviews" packet.
• 2. A copy of your prior peer review report, if we did not perform your last peer review.
• 3. If you are a TX or NJ client we will need to see a copy of your firm license.
• 4. Our engagement letter prepared by us and signed by you.
• 5. An “Appendix A” provided by us and completed by you.
• 6. Financial statements you prepared that we have selected based on your completion of “Appendix A”.
• 7. An “Appendix B” provided by us and completed by you for each set of financial statements we have selected.
• 8. An engagement letter between you and your client for all financial statements we have requested that are compiled with a balance sheet date after 12-15-10 or reviewed regardless of the balance sheet date.
• 9. Management representation letters, inquiries, and analytical procedures for all reviewed financial statements we have selected.
• 10. A firm representation letter provided by us and signed by you.
• 11. Matters for Further Consideration provided by us and signed by you.
• 12. Findings for Further Consideration provided by us and signed by you.

    

8. What are your fees for performing an engagement peer review?

We have three flat rates that are very competitive. The rates are based on the highest level of service that your firm performs. Firms whose highest level of service is compilations without disclosures will have the lowest rate, firms whose highest level of service is compilations with disclosures will be charged the middle rate, and firms whose highest level of service is reviews are billed at the highest rate. Please contact us for the most current rates.

    

9. How do I complete my Appendix A?

On page 6107 of the “Instructions to Firms Having an Engagement Peer Review” you will find the “Appendix A” we sent to you. It will already contain your Peer Review Due Date and your 12 Month Peer Review Year Ended. Under the heading “Industry of Client”, you need to enter the industry code or description of the industry. One line equals one industry. In the next column “Level of Service Provided” you need to circle the level of service performed for each industry. Under the “Responsible Party 1” column, on the line corresponding to the level of service provided, indicate the number of engagements you are responsible for within each industry. Keep in mind that an engagement is one set of financial statements. If you have a client that you prepare monthly financial statements for then it will equal 12 engagements. The “Responsible Party 2” and the “Responsible Party 3” columns apply if your firm consists of more than one CPA who is responsible for engagements. On the line “Total number of C-8 engagements performed” you need to indicate the number of engagements that you prepare for management use only. If you perform C-8 engagements they are considered COs and should be included in the total for COs under the “Level of Service Provided” column. You need to sign, title and date the “Appendix A”.