AICPA REVISES PEER REVIEWThe American Institute of CPAs has issued revised standards for performing and reporting on peer reviews, along with interpretations of those standards.

The document provides standards for administering, planning, performing, reporting and accepting peer reviews of CPA firms and individual CPAs enrolled in the AICPA Peer Review Program. The standards are effective for peer reviews commencing on or after Jan. 1, 2009.

Firms and individuals enrolled in the program are required to have a peer review once every three years of their accounting and auditing practice. An independent evaluator conducts the review, while the AICPA oversees the program.

There are two types of reviews: system reviews and engagement reviews. System reviews focus on a firm’s system of quality control. Engagement reviews focus on work performed on selected engagements.

The new revisions include more principles-based standards, and changes to engagement and report reviews. The reporting process has been re-engineered to include a shorter and more concise peer review report, which enhances its clarity, comparability and understandability.


Clayton Holdings, a Shelton, Conn.-based provider of technology-based services to lenders, investors and other financial services firms, has named Big Four firm KPMG as its auditor, replacing Grant Thornton, which was dismissed.

In a federal filing, the company said that the reports by its former auditor on its financials over the past two years did not contain an adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles.


Presidential Realty Corp., a real estate investment trust based in White Plains, N.Y., dismissed its independent accountant, Big Four firm Deloitte & Touche, and hired Holtz Rubenstein Reminick as its replacement. The company had no disagreements with Deloitte on any accounting matters, and said that the change was approved by its audit committee.


Distributed Energy Systems, a designer and builder of stand-alone and grid-connected power systems, has dismissed Big Four firm PricewaterhouseCoopers as its auditor and engaged UHY LLP as its new independent accountant. The Wallingford, Conn.-based company said that the change in auditors did not stem from any disagreements over accounting matters.

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