Peer Reviews: System Review vs. Engagement Review

Effective for Peer Reviews Commencing after April 1, 2014.

This page is intended to help you understand what type of peer review your firm should undergo based on the types of engagements your firm performs, as indicated on its Peer Review Information Form.  Engagements covered in the scope of the Peer Review Program are those included in the firm's accounting and auditing practice that are not subject to PCAOB permanent inspection. See Interpretation 6-9 of the  Peer Review Standards, Engagements Subject to PCAOB Inspection, for more information.

System Review – if your firm performs any of the services mentioned below as its highest level of service, your firm should have a System Review.

  • Engagements under the Statements on Auditing Standards (SASs) 
  • Engagements under Government Auditing Standards (GAS),
  • Examinations under the Statements on Standards for Attestation Engagements (SSAEs), or
  • Engagements under PCAOB standards.

Engagement Review – If your firm performs either of the types of services listed below as its highest level of service, your firm should have an Engagement Review.

  • Services under Statements on Standards for Accounting and Review Services (SSARSs) or
  • Services under the SSAEs not listed above in System Reviews.

If you still have questions about the type of review your firm should undergo, please review the chart below: 

If a firm is required to have a System Review, all the engagements listed in the preceding table would be subject to selection for review, ordinarily based on periods ending during the year under review, except for financial forecasts, projections and agreed upon procedures. Financial forecasts, projections and agreed upon procedures with report dates during the year under review would be subject to selection.

If you are uncertain about how to classify any engagements, you may consider consulting the AICPA Professional Standards, your administering entity, or the AICPA peer review technical staff via or 919.402.4502 and select option 3.