1. 1 Peer Review Panel Questions & Answers Instructors: Gary Chapman Kelly Hammond Stan Sewell 1

2. Session Objective 2 Answer your questions on the peer review process, provide guidance on compliance issues, and offer advice on how to prepare for and pass a peer review.

3. Q u e s t i o n s ?Q u e s t i o n s ? 3 Non-Audit Services? – Opinion? – Independence? Documentation?

4. Purpose & Objectives of Peer Reviews 4 Evaluate the Design & Operation of a Department’s Quality Control System Provide Reasonable Assurance that a Department Conforms with GAGAS

5. What Does “Conforms” Imply? 5 Conform (def): To come to have the same form or character. Reasonable Assurance of Conformity Does not Imply Perfection Can be Form over Substance

6. Quality Control System 6 GAGAS 3.83 states that the formality of an audit organization’s quality control system will vary based on its size, people, complexity of its work, and cost-benefit considerations.

7. Observations 7 Pre-Site Visit Review of QCS Design “No” Answers Will Require Discussion Benefits of Early Communication Department has more time to consider issues Promotes openness Enables quicker resolution once on-site

8. Site Visit Schedule Celebrate! 8 Monday Tuesday Wednesday Thursday Friday Entrance Conference CPE Review, Interviews, Work on QCS Engagement Reviews – 25% Finish QCS Engagement Reviews – 75% Assess Non-audit Work Finish Engagement Reviews Finish Interviews, Summary of Exceptions Review w/ Coordinator Exit Conference, Prepare Report Wrap up Reporting, W/P’s 8

9. Forming the Opinion 9 Pass does not = 100% compliance Pass with Deficiencies or Fail Maintain Open Mind and Composure Contact Coordinator Early Fax / Email Summaries of Exceptions To Coordinator

10. Resources 10 Standards/Standards/Standards! Peer Review Guide Guidance for Complying with GAS Related to Nonaudit Services Review Leader Checklist Team Members Peer Review Coordinator

11. IN SUMMARY 11 Prepare Early Be Organized & Have a Plan Listen & Ask Questions Use Your Coordinator As A Resource Standards are the Standard Stay Calm - Build Consensus

12. Q u e s t i o n s ?Q u e s t i o n s ? 12