728x90
Prudential_IL_Banner-Ad
180x150_compliance%5b1%5d

It's the Law 

For license renewals on or after July 1, 2012, all firms and sole practitioners who provide services (i.e., accountancy activities) requiring an Illinois license under Section 8.05(a)(1) of the Illinois Public Accounting Act (i.e., audits and/or reviews of historical financial statements and/or examinations of prospective financial statements) must undergo a peer review every three years.

Just the Facts 

  • Firms and sole practitioners who already participate in a voluntary peer review program for purposes of meeting individual AICPA membership requirements,Governmental Auditing Standards and/or other regulatory requirements will be unaffected by the new law. Their peer review year-ends and due dates will not change.

  • Firms and sole practitioners who do not already participate in a voluntary peer review program will need to enroll in an approved program and have completed a peer review in order to renew their Illinois license.

  • Sole practitioners must have satisfactorily completed a peer review during the three years immediately preceding their individual license renewal period (September 30, 2015).

  • Licensed CPA firms (including sole practitioners operating under a name that implies more than one individual, e.g. "and Company" or "and Associates") andprofessional service corporations (PSCs) must have satisfactorily completed a peer review during the three years immediately preceding their firm license renewal period (November 30, 2015 and December 31, 2015, respectively).

  • Peer review is a multi-step process - from enrollment and scheduling to performance and report submission to technical review and committee acceptance. The time between commencement of your review and acceptance by a committee of your peers can take anywhere from three to six months. 
  • Firms and sole practitioners enrolled in the program will be expected to pay an annual administrative fee to the peer review administrator in addition to the cost of the triennial peer review paid to the peer reviewer. Review costs can vary greatly depending upon the size and nature of the firm's practice. 

Mandatory Peer Review Requirements FAQ

  • What types of engagements require a review under the state of Illinois’ licensing requirement?

  • Which license is subject to the state of Illinois’ peer review requirement?

  • What if my firm only performs compilation engagements?

  • What if my firm only performs "management use only" financial statement engagements and/or preparation service engagements?

  • What if my firm only performs tax and consulting services?

  • What period will be covered by the peer review?

  • Who will assign my firm’s peer review due date?

  • How much will this cost?

  • How do I count the number of professionals?

contact

Questions, comments, feedback

Paul Pierson
Director, Professional Standards and Peer Review | 312.517.7610