A Peer review is a periodic external review of a firm’s quality control system in accounting and auditing.  Its aim is to maintain and improve the quality of the accounting and auditing services performed by accounting firms.

In order to be a member of the American Institute of Certified Public Accountants (AICPA), it is required that each member firm must have a peer review performed every 3 years, if the services performed by such a firm are within the scope of the AICPA’s practice monitoring standards.  They include most compilation, review, or audit reports that fall within the peer review standards.

Effective January 1, 2004, with the exception of sole practitioners and small public accounting firms that employ no more than four CPA licensees, the California Board of Accountancy requires as a condition of licensure that a firm be peer reviewed.

Tseng & Lee LLP has successfully passed the last 3 peer reviews with the highest permissible rating.