Congratulations to Delaware for Adopting Peer Review Requirement for CPA Firms

The American Institute of CPAs (AICPA) congratulates the Delaware Society of CPAs, the Delaware Board of Accountancy and our state-level profession partners on their successful advocacy efforts that resulted in the enactment of legislation to require all CPA firms licensed in the state to participate in the peer reviewprocess.  The state’s new peer review and firm ownership requirements, which align with respective provisions in the Uniform Accountancy Act (UAA), are a victory for the profession.  Delaware Governor Jack Markell (D) signed the measure in May, which means that 53 jurisdictions nationwide now require firms to participate in peer review.

All 50 states, the District of Columbia, the U.S. Virgin Islands and Guam have peer review requirements in their laws.  Additionally, the Commonwealth of the Northern Mariana Islands (CNMI) has adopted a peer review provision that is awaiting implementation by its board of accountancy.  Puerto Rico remains the only jurisdiction without a peer review requirement for its licensees.

Delaware’s legislation also included a provision that moves the state to a simple majority ownership structure for CPA firms – the 52nd jurisdiction to adopt such a provision.  Only Hawaii and New York require CPA firms to be 100 percent owned by licensees, while CNMI’s statutes and rules do not include information on non-CPA ownership.

For more information on peer review, firm ownership and the UAA, visit the AICPA State Regulation and Legislation Team website and follow the team on Twitter @AICPAState.