Moving toward increased transparency in peer review process.

AICPA Chairman of the Board Scott Voynich discussed in his July "Chair's Corner" column the governing Council's recent approval of a resolution that supports the need for increased transparency of the peer review process. Specifically, the resolution affirms the need for and importance of greater access to peer review information and directs the Peer Review Board and staff to assist members in complying with state licensing requirements.

As the national organization for CPAs, the AICPA supports a profession with a profound commitment to the public trust. The CPA profession has a long history of a willingness to raise the bar on itself as it seeks to fulfill that commitment. Sharing certain peer review information with an expanded array of user groups would further demonstrate that CPAs hold themselves to the highest professional standards.

Market Demands, Professional Hallmarks

Increased transparency in governance and business practice is a mandate in today's markets. While peer review was originally designed as an educational and remedial program, the landscape has changed to the point where the profession needs to meet marketplace and regulatory demands for disclosure and increased transparency. Shedding light on CPAs' work reinforces the core values that distinguish our profession from others.

Transparency of peer review results also is consistent with the profession's hallmark of competence. It enables the marketplace to identify CPAs who failed to perform at the highest professional standards as well as shows how the peer review process remediates those firms.

Benefits to Greater Transparency

Easing access to peer review findings demonstrates to the public that the profession has a process to evaluate whether a firm has performed work in accordance with professional standards, thereby increasing the public's level of trust in the profession and boosting the CPA's image. By demonstrating our willingness to disclose peer review findings, the profession improves its chances of continuing to monitor itself.

Peer Reviews Serving the Public Interest

Evidence of the evolving value of peer reviews is seen in the fact that when peer review was first adopted, very few, if any, state boards of accountancy mandated peer review for licensure. Now, a majority do so. And if we do not shape the process of greater transparency, some type of governmental or regulatory alternative may be on the horizon. In fact, the National Association of State Boards of Accountancy is working to amend the Uniform Accountancy Act and Rules to provide for greater transparency of peer review information.

Ensuring uniformity of the peer review program around the country is another reason to take a proactive role. Failure to implement a transparency policy could result in state licensing agencies taking varying approaches to peer review disclosure. Lack of uniformity creates significant problems for practitioners who practice over state lines. Smaller firms that serve clients in multiple states may be the most disadvantaged if requirements differed from state to state.

More Information to Come

Members should watch for additional information that will be available during the next few months from this and other AICPA publications, Web casts, e-mail updates and other sources. Opportunities for members to exchange ideas and forums to provide feedback will take place as well.