The AICPA’s Peer Review Board (PRB) met by conference call on Thursday, May 7, 2020 and approved a six month extension for 2020 peer reviews, corrective actions, and implementation plans due before October.
Reasons for the Extension
The PRB took this action because, as stated in the agenda notes, “many firms across the country are currently struggling due to the impact of COVID-19 on their clients and their daily operations.” As a result, PRB suggested that the AICPA Peer Review Program (Program) find a way to alleviate some of that stress for firms that are undergoing their reviews this year.
Automatic Due Date Extension
The PRB agreed to a plan under which the six-month extensions will be granted automatically in the PRB’s PRIMA system to firms with reviews, corrective actions or implementation plans with original due dates falling between January 1 and September 30, 2020.
The PRIMA system will generate letters to inform firms of the extensions and to remind them of the need to be familiar with the regulations and requirements of their state boards of accountancy. These include the need to inform the respective state board of the extensions and to obtain their approval. The PRB also encouraged firms to have reviews performed by the original due dates if they are able.
The PRB’s agenda notes include several examples of the effective of the extension. The PRB and Program staff will continue to monitor the impacts of COVID-19 through the summer months and will evaluate whether automatic extensions would be appropriate for firms with due dates after September 30, 2020.
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