Section .0100 - General Peer Review Requirements

Effective June 1, 2026

21 NCAC 08M .0105 Peer Review Requirements

(a) A CPA or CPA firm providing any of the following services to the public shall participate in a peer review program:

(1) audits;

(2) reviews of financial statements;

(3) compilations of financial statements; or

(4) any engagement to be performed in accordance with the Statements on Standards for Attestation Engagements.

(b) A CPA or CPA firm not providing any of the services listed in Paragraph (a) of this Rule is exempt from peer review until the issuance of the first report provided to a client. A CPA or CPA firm shall register with the peer review program as listed in Paragraph (d) of this Rule within 30 days of the issuance of the first report provided to a client.

(c) A CPA, a new CPA firm, or a CPA firm exempt from peer review that starts providing any of the services in Paragraph (a) of this Rule shall furnish to the peer review program selected financial statements, corresponding work papers, and any additional information or documentation required for the peer review program within 18 months of the issuance of the first report provided to a client.

(d) Enrollment in and completion of the AICPA Peer Review Program, or a program that substantially complies with the AICPA Standards for Performing and Reporting on Peer Reviews, shall be required. The AICPA Standards for Performing and Reporting on Peer Reviews are incorporated by reference, including subsequent amendments and editions. This document may be accessed at https://us.aicpa.org/research/standards/peerreview at no cost.

(e) CPA firms shall not rearrange their structure or act in any manner with the intent to avoid enrollment in peer review.

(f) A CPA firm that does not have offices in North Carolina and that has provided any services as listed in G.S. 93-10(c)(3) to North Carolina clients shall enroll in a peer review program.

(g) Subsequent peer reviews of a CPA firm are due three years and six months from the year end of the 12-month period of the first peer review, unless granted an extension by the peer review program.

(h) All CPA firms enrolled in the AICPA Peer Review Program registered with this Board shall also participate in the AICPA Facilitated State Board Access process and shall not opt out of any part of the process.

(i) The firm shall allow the administrating entity to provide the Board access to the documents and peer review information via a secure website process such as the AICPA Facilitated State Board Access (FSBA).

21 NCAC 08M .0106 Compliance

(a) A CPA firm registered for peer review shall provide to the Board the following:

(1) peer review due date;

(2) year end date;

(3) the acceptance letter from the administering entity from the peer review program within 60 days of the date of the letter; and

(4 ) for all failed and second passed with deficiencies reports, a package to include the following items issued by a peer review program within 60 days of the date of the completion letter:

(A) peer review report accepted by the administering entity;

(B) the firm’s letter of response to the peer review report;

(C) the acceptance letter from the administering entity; and

(D) letter signed by the administering entity notifying the firm that the required actions have been appropriately completed, if applicable.

(b) A peer review shall not be complete until the completion letter is issued by the peer review program with the new due date.

(c) If a CPA firm fails to comply with Rule .0105(c), (d), or (g) of this Section, and continues to offer or render services, the Board may take disciplinary action against the CPA firm’s members that may include a suspension of each members’ CPA certificate for a period of not less than 30 days and a civil penalty up to one thousand dollars ($1,000) as set forth in G.S. 93-12(9).

21 NCAC 08M .0107 Ethical Duties of Reviewer

(a) A reviewer shall be independent with respect to the reviewed CPA firm and comply with the AICPA Standards for Performing and Reporting on Peer Reviews.

(b) Information concerning the participating CPA firm or its clients or personnel that is obtained as a consequence of the review is confidential and shall not be disclosed to anyone not involved in the peer review process.