Contract to Audit Accounts

 

My firm has had their peer review performed; however, the peer review report has not been released by the AICPA/TSCPA peer reviewers. Does my firm have to wait until we receive and submit the peer review letter and acceptance letter before Municipal Audit will approve any Contract to Audit Accounts with our firm?

 

Based on our understanding of the peer review requirements as set forth in the 2007 revision of Government Auditing Standards, in order to be in compliance with the standards, Municipal Audit has required that a copy of a firm’s peer review report be submitted to our office prior to approval of any Contract to Audit Accounts. If the firm’s peer review letter has not been released when a Contract to Audit Accounts is submitted, the firm must attach a letter from either the AICPA or TSCPA which acknowledges that a peer review has been scheduled and is in progress for the audit firm submitting audit contracts for approval. Municipal Audit will continue to require firms to submit their peer review report letter and acceptance letter along with any letter of comments to this office. However, in order to attempt to expedite the contract approval process, we will no longer use actual receipt of these reports as a precondition for approval of audit contracts.

Please note that all peer review letters and related information must be submitted through the "Manage My Account" section within CARS.