PROC reviews draft 2024 annual report, flags reviewer concentration and data corrections
December 13, 2024 | California Board of Accountancy, Other State Agencies, Executive, California
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The Peer Review Oversight Committee on Dec. 13 reviewed the draft PROC 2024 annual report and received updates on peer-review oversight activities, data corrections from CalCPA, and external peer-review developments.
"Staff ask that the PROC review the draft annual report and provide feedback and edits," Michelle Center, chief of the Licensing Division, said as she guided members through the report section by section. Staff noted they will bring a revised draft back in February for final approval and requested non-substantive edits be submitted by Dec. 20.
Staff reported attending eight Report Acceptance Body (RAB) meetings and observing 83 reports since the last PROC meeting; the RABs were found to be meeting standards and handling reports appropriately. The committee also discussed a virtual administrative site visit to the California Society of Certified Public Accountants (CalCPA). Staff and members said the site visit went smoothly; CalCPA director Rich Simetian told the PROC he appreciated the dialogue and the earlier timing of the visit, which he said facilitated completion.
Members pressed staff about a perceived concentration of reviews performed by a single high-volume peer reviewer. Sharon Selick asked whether that reviewer was carrying an outsized load; staff responded that many of the reviewer s engagements were system reviews for very small firms (many with fewer than two partners), which made the volume more feasible. Staff said they will expand the report text to discuss concentration and, if pervasive issues are found, can cap the number of new reviews a reviewer may accept.
On national program developments, Jeffrey De Leiser summarized items posted on AICPA and NASBA websites, including the AICPA's fall 2024 "Peer Review Prompts" newsletter and reviewer alerts. He cited a survey item reporting that "77 of reviewers say that their clients have not even begun the implementation" of new quality management standards, a point staff flagged as relevant to PROC planning.
Votes at a glance
- Minutes (08/09/2024): Motion to adopt moved by Fausto Hinojosa; roll-call vote recorded Yes from Jeffrey Delizer, Sharon Selick, Fausto Hinojosa, Laura Ross, and Nick Peterson; motion carried.
Next steps: staff will correct table numbering and data in the draft, follow up with CalCPA about a new 2023 data element that needs clarification, incorporate updated information where available, and return the revised annual report for final approval in February. The PROC adjourned after confirming assignments and the January CBA presentation schedule.
"Staff ask that the PROC review the draft annual report and provide feedback and edits," Michelle Center, chief of the Licensing Division, said as she guided members through the report section by section. Staff noted they will bring a revised draft back in February for final approval and requested non-substantive edits be submitted by Dec. 20.
Staff reported attending eight Report Acceptance Body (RAB) meetings and observing 83 reports since the last PROC meeting; the RABs were found to be meeting standards and handling reports appropriately. The committee also discussed a virtual administrative site visit to the California Society of Certified Public Accountants (CalCPA). Staff and members said the site visit went smoothly; CalCPA director Rich Simetian told the PROC he appreciated the dialogue and the earlier timing of the visit, which he said facilitated completion.
Members pressed staff about a perceived concentration of reviews performed by a single high-volume peer reviewer. Sharon Selick asked whether that reviewer was carrying an outsized load; staff responded that many of the reviewer s engagements were system reviews for very small firms (many with fewer than two partners), which made the volume more feasible. Staff said they will expand the report text to discuss concentration and, if pervasive issues are found, can cap the number of new reviews a reviewer may accept.
On national program developments, Jeffrey De Leiser summarized items posted on AICPA and NASBA websites, including the AICPA's fall 2024 "Peer Review Prompts" newsletter and reviewer alerts. He cited a survey item reporting that "77 of reviewers say that their clients have not even begun the implementation" of new quality management standards, a point staff flagged as relevant to PROC planning.
Votes at a glance
- Minutes (08/09/2024): Motion to adopt moved by Fausto Hinojosa; roll-call vote recorded Yes from Jeffrey Delizer, Sharon Selick, Fausto Hinojosa, Laura Ross, and Nick Peterson; motion carried.
Next steps: staff will correct table numbering and data in the draft, follow up with CalCPA about a new 2023 data element that needs clarification, incorporate updated information where available, and return the revised annual report for final approval in February. The PROC adjourned after confirming assignments and the January CBA presentation schedule.
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