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CBA adopts 2025 Peer Review Oversight Committee report, seeks tracking of firms resigning peer review
Summary
The board adopted the PROC 2025 annual report noting that 823 peer reviews were performed in 2024 with 78% passing; PROC recommended monitoring reviewer pipeline and establishing notification/timeline processes for firms that resign or leave peer review.
The California Board of Accountancy on March 13 adopted the Peer Review Oversight Committee’s (PROC) 2025 annual report, which included recommendations to strengthen oversight of peer review in light of shifts in firm structures.
PROC reported that 823 system and engagement peer reviews were conducted on California firms in 2024; 78% received a pass rating and 15% a pass with deficiency, the report said. The annual administrative site visit of CalCPA was completed in 2025 and PROC updated its review processes to include current issues such as alternative practice structures and the AICPA’s new quality management standards.
PROC recommended that the board continue monitoring the reviewer population and pipeline, ensure out‑of‑state administering entities meet California requirements, and develop a process and timeline to obtain a list of firms that resign from the peer review program, PROC chair said. Board members discussed that firms may leave peer review for multiple reasons, including ending attest services, consolidation or cost pressures, and emphasized the importance of distinguishing voluntary resignations from terminations.
The board approved PROC’s annual report and the accompanying recommendations and asked staff to work with PROC and national program administrators to refine notification processes and oversight methods.
