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Peer Review Results Spectacular

Posted by Admin Posted on Oct 04 2021

For the twelve months ended April 30, 2021, Schulte & Company CPAs Inc. has received the best peer review rating, a rating of pass. Congrats Team Schulte!

Every three years accounting firms undergo the peer review process administered by the American Institute of Certified Public Accountants.  A passing grade is needed to renew a firm’s license to practice in the attest accounting field, including the ability to provide services for preparation, compiled, reviewed and audited financial statements.  Since Schulte & Company provides a full range of financial statement services from preparation to audit, Schulte underwent the most stringent type of peer review, which is the System Review

A System Review is designed to provide a peer reviewer with a reasonable basis for expressing an opinion on whether, during the year under review:

  1. The reviewed firm’s system of quality control for its accounting and auditing practice has been designed in accordance with quality control standards established by the AICPA and
  2. The reviewed firm’s quality control policies and procedures were being complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects.

In performing a System Review, the peer reviewer might:

  • Interview firm personnel,
  • Examine CPE records,
  • Examine outside consultations regarding A&A matters,
  • Examine independence representations, and
  • Test a reasonable cross-section of the firm’s engagements with a focus on high-risk engagements and significant risk areas.

Most of the procedures in a System Review are performed at the reviewed firm’s office.  The scope of the peer review does not encompass other segments of a CPA practice, such as tax services or management advisory services, except to the extent they are associated with financial statements, such as reviews of tax provisions and accruals contained in the financial statements.   Firms can receive a rating of pass, pass with deficiency(ies) or fail. 

Schulte & Company’s next peer review period will be for the twelve months ended April 30, 2024.