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CalCPA director details peer-review trends, PRSU Number 3 and enforcement pathways
Summary
CalCPA’s peer review director told the California Board of Accountancy’s PROC on Feb. 25 that PRSU Number 3 takes effect Feb. 28, 2026, and that CalCPA is seeing fewer enrolled firms, more consolidation including private-equity activity, higher non-pass rates among small firms and a stepped process of remedial action and referrals for repeat failures.
Rich Samidian, director of CalCPA’s peer review program, gave the Peer Review Oversight Committee a detailed briefing on Feb. 25 about how the association administers peer reviews for California, Arizona and Alaska and how recent changes will affect which entity administers reviews. Samidian said the AICPA’s Peer Review Standards Update (PRSU) Number 3 was approved in February and “is effective for peer reviews scheduled on or after 02/28/2026.”
Why it matters: PRSU Number 3 includes temporary assignment of certain elevated-risk or alternative-practice-structure (APS) firms to the AICPA’s National Peer Review Committee (NPRC) rather than to state administering entities; Samidian and member Laura Ross said NPRC technical resources are being used while the new approach is evaluated. Samidian warned that larger structural changes in practice ownership — including consolidation driven in part by private equity — are shrinking the pool of…
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