Peer review is a mandated process by which every CPA firm who prepares financial statements must open their files once every three years to an inspection by an independent CPA who will report back to the Massachusetts Society of CPA’s (MSCPA) on the quality of the financials prepared by the firm. The purpose of the peer review program is to elevate the quality of financial statement preparation within the profession.
The results of a firm’s peer review are not available for public inspection; rather it is kept confidential by the MSCPA. For that reason, it is important if you are considering hiring a CPA firm that you ask for a copy of their most recent peer review. There are three levels of reports; pass, pass with deficiencies and fail. In order to qualify as a peer reviewer, you must meet certain educational qualifications and be approved by the MSCPA. Your firm must also receive a pass rating on its peer review.
There are currently over 1,100 Massachusetts CPA firms enrolled in the program but fewer than 50 firms who are authorized to conduct peer reviews. Chris Jones and David Lorenzi are veteran peer reviewers and for many years have reviewed firms and reported the quality results back to the MSCPA. Dave Lorenzi also sits on the MSCPA Review Approval Board, a board that approves the review ratings and mediates disagreements between the reviewer and the firm.
If you would like to learn more about the peer review process or would like to inquire about Paresky Flitt being handling your peer review, please contact Chris Jones or David Lorenzi.