Question

Williams & Co. is a medium-sized CPA firm enrolled in the Private Companies Practice Section (PCPS). The firm is to have a peer review under the AICPA Peer Review program. The review will most likely be performed by:________

a. Partners of Williams & Co. who are NOT associated w/ the particular audits being reviewed
b. Audit review staff of the SEC
c. Audit review staff of the AICPA
d. Another CPA firm

Answer 1

d. Another CPA firm

Step-by-step explanation:

A peer review of accounting and auditing practice is required one time every three years for each firms that are enrolled in the American Institute of CPAs (AICPA) Peer Review Program.

The peer review program is supervised by the AICPA but it is carried by an independent evaluator licensed to practice as a CPA, that is, another CPA firm, and approved to carry out the task by the AICPA. The independent evaluator is therefore called the peer reviewer.