OUTLOOK & ANALYSIS

Help Wanted: New York scrambles for peer reviewers to handle new mandate

New Madoff-fueled rule to affect 1,200 small CPA firms.

The new accountancy statute takes effect in 2012. But New York is already looking for CPAs to handle the new requirement, according to Richard Stolz, posting at WebCPA.

The number of CPA firms in New York subject to a once-every-three-year peer review would nearly double, from approximately 1,800 to about 3,000. But New York only has about 100 qualified peer reviewers who conduct approximately 600 reviews annually.

New York joins 45 other states in mandating peer review. With California coming along, that would leave only Colorado, Delaware, Florida and Hawaii as holdouts. To be sure, the AICPA has long mandated peer review for membership.

And, by the way, Madoff’s so-called auditor would still be exempt from peer review: the one-person Friehling firm is too small.

2 Responses to “Help Wanted: New York scrambles for peer reviewers to handle new mandate”

  1. Rick Telberg

    Kel…

    Thanks for the comment.

    The system failed at so many points, I run out fingers when I start finger pointing. But the CPA profession could learn a few things, starting with: Don’t trust the fate of the profession to others. The profession needs strong self-regulation, plus a strong voice in the kind of regulation that nurtures a strong profession.

  2. Kel

    Ahh regulation. Creating more work for most people, and not really fixing the problem.

    What do you think could have prevented the Madoff situation from occurring though?