Peer Review

What is Peer Review?

Peer review is an independent evaluation of a CPA firm’s accounting, auditing, and attestation engagements to ensure compliance with professional standards. It strengthens quality and public confidence in the profession.
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Licensing & Compliance
  • Requirement under the Michigan Occupational Code
    Firms and sole practitioners performing audits, reviews, or compilations must undergo peer review every 3 years.
  • License Renewal
    Peer review is a condition of license renewal under the Michigan Occupational Code.
  • Notification Requirement
    Firms must notify LARA within 30 days if they receive:
    • A fail report, or
    • A second consecutive non-pass report.
      Noncompliance may result in fines.
    • Email: bplhelp@michigan.gov (Include ‘Accounting Peer Review’ in subject line)
    • Mail: Bureau of Professional Licensing, PO Box 30670, Lansing, MI 48909
Getting Started
Types of Peer Review
  • System Review – for firms with audits as the highest level of service.
  • Engagement Review – for firms with reviews/compilations as the highest level of service.
  • Not Required – if preparation engagements are the highest level of service (unless firm remains enrolled).
The Process

Note: The firm’s peer review due date is the date by which your reviewer should have completed the peer review and submitted it the administering entity.

Notification
Approximately 7 months before your due date, your firm’s peer review information case (PRI) is sent via email through PRIMA to the designated contact.
Scheduling
Complete the peer review information case (PRI) to open the scheduling case in PRIMA. Your firm must:
  • Select and engage a qualified reviewer
  • Negotiate fees and review dates directly with the reviewer.

Once finalized, scheduling details are submitted in PRIMA and verified. 

Review Case
After scheduling, a review case is generated. The reviewer conducts the review. Your firm may need to respond to:
  • Matters for further consideration, findings for further consideration or the report issued.
Submission
Once responses are complete, the reviewer uploads all documents and submits the review case to the administering entity through PRIMA. After all required workpapers are received, the case moves to a technical reviewer. 
Technical Review
A technical reviewer evaluates all documents. The review is then presented to the Report Acceptance Body (RAB) for consideration. 

 

RAB Decision
The RAB may:
  • Accept the review, (with or without an implementation plan)
  • Assign corrective actions to the firm which must be completed satisfactorily before full acceptance.
  • Defer or delay acceptance – for additional clarification.
Acceptance
When the review is fully accepted, an acceptance letter is issued to the firm through PRIMA.
Required Notifications
If your firm receives a Fail rating or a second consecutive Non-Pass rating, you must notify the Michigan Department of Licensing and Regulatory Affairs (LARA) within 30 days of RAB acceptance. 

 

Peer Review Reports
  • Ratings
    • PASS – system is designed and followed.
    • PASS with Deficiencies – generally appropriate, with noted issues.
    • FAIL – system not designed or not complied with.
  • Nonconforming Engagement
    Engagements not in conformity with professional standards; firm must determine correction/reissuance.
Help & Support
View additional peer review resources and guidance

  • MICPA PRIMA Assistance
    • Mon–Fri, 8:00 am–5:00 pm ET
    • Contacts: Karen Guerra (248.267.3718), Bonnie Schmidt (248.267.3751)
  • AICPA Assistance (Mon–Fri, 8:00 am–8:00 pm ET)
    • PRIMA Firm Help: 919.402.4502, press 1
    • PRIMA Reviewer Help: press 2
    • Peer Review Standards & Process: press 3
    • Issue Advisory Hotline: press 4

Contact Peer Review Department