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A91685 1 (2010-09-21)

handle is hein.gao/gaobadvxl0001 and id is 1 raw text is: 



AGA
  ~G A 0
4      A ointablty I Integrity * Reliability
United States Government Accountability Office
Washington, DC 20548


         September 21, 2010


         LaShaun King
         Technical Manager, AICPA Peer Review Program
         AICPA
         220 Leigh Farm Road
         Durham, NC 27707-8110

                Subject: Exposure Draft of Proposed Revisions to the Standards for
                Performing and Reporting on Peer Reviews

         This letter provides the U.S. Government Accountability Office's (GAO) comments on
         the American Institute of Certified Public Accountants (AICPA) Exposure Draft of
         Proposed Revisions to the Standards for Performing and Reporting on Peer
         Reviews: Performing and Reporting on Peer Reviews of Quality Control Materials
         (QCM) and Continuing Professional Education (CPE) Programs. We appreciate
         the opportunity to comment on this proposal. Our responses to the questions
         included in the Guide for Respondents section of the exposure draft are included
         below.

         Questions 1 and 2: Do you believe that the peer review relationship currently
         permitted by paragraph 159 is appropriate? Are there any indeDendence concerns
         that arise as a result of the peer review relationship currently permitted by paragraph
         159?

         When a user firm obtains QCM or CPE programs from a provider, a relationship is
         established between the user firm and the provider, which would create an
         independence impairment if members of the provider were to serve as members of
         the peer review team for the user firm. In this situation, the provider would in effect
         be responsible for evaluating the adequacy of the QCM or CPE programs, which the
         provider designed and provided to the reviewed entity. This results in the provider
         reviewing their own work.


         Question 3: Do you believe that the proposed revisions are necessary to serve the
         main goal of the AICPA Peer Review Program?

         The proposed revisions will improve the standards by enhancing the independence of
         peer reviewers.

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