American Institute of CPAs (AICPA) is seeking public comment on a proposed change to its peer review program that would centralize the administration of reviews for firms operating under alternative practice structures (APS), including those with private equity investment.
Outlined in proposed Peer Review Standards Update (PRSU) No. 3, the change would require these firms to have reviews administered by the AICPA’s National Peer Review Committee, rather than one of the 23 state administering entities. The proposal is aimed at promoting consistency as more firms adopt new ownership and operating models.
“Changing business structures create both opportunity and risk for the profession,” said Susan Coffey, CEO of public accounting at the AICPA. “Making sure firms have quality management systems designed to comply with professional standards is foundational to protecting the public interest. The administration of these reviews by the National Peer Review Committee assures the appropriate and consistent degree of oversight of APS audit practices over the next several years, as more firms take on private equity investment.”
The comment period is open until Oct. 25. If approved, the change would apply to peer reviews with years ending on or after Dec. 31, 2025.
The proposal also includes a change to qualifications for peer reviewers of firms that perform or assist in engagements under PCAOB standards, ensuring that review teams have members with deeper familiarity with those requirements.
