Peer Review Changes Effective May 1, 2023

by Hayden Williams, CPA, CGMA

For more than 30 years, the WSCPA has administered the Peer Review Program for  Washington CPA firms. However, Julie Phipps, Peer Review Administrator for the past 25+ years, is retiring on May 31, 2023. As a result, the WSCPA Board of Directors, staff, and Peer Review Committees determined that the time is right to outsource the administration of the program. Commencing May 1, the Colorado Society of CPAs (COCPA) will administer the Peer Review Program for Washington firms. We are extremely pleased to partner with the COCPA and we will work together to ensure a smooth transition and that you continue to receive the same level of service.

What does this mean for you and your firm? 

New points of contact
Your new contacts for Peer Review administration questions at the COCPA will be Jill Turner and Sheila Duggan. They can be reached at either peerreview@cocpa.org or 303.800.9190.

Different pricing structure

• Each year, the WSCPA sends invoices to firms enrolled in the Peer Review Program to cover the operational costs of the program. The Peer Review Annual Administrative fee covers the WSCPA fiscal year of June 1 – May 31.
• COCPA bills its firms in January for the calendar year. Due to the transfer of the  administration, COCPA will send Washington firms a pro-rated invoice in June 2023 to cover the cost through December 2023. In January 2024, all firms administered by COCPA will be billed for the full calendar year.
• COCPA annual fees for firms that perform auditing, accounting and/or attest functions:
  Sole Practitioners: $450
  Firms with 2-5 Professionals: $555
  Firms with 6-10 Professionals: $675
  Firms with 11-20 Professionals: $900
  Firms with 21 or more Professionals: $1,000

Additional Fees: There is a $500 reinstatement fee for firms that have been dropped for peer review non-compliance and an additional $500 for Technical Evaluation Fees for firms referred by the Department of Labor and the Department of Health and Human Services for non-compliance. If you hold an active Washington firm license and issue attest and/or compilation or review engagements, you are required to undergo a peer review at least once every three years. Upon renewal of an active firm license, all firms, except those exempt from Peer Review, must have undergone a peer review within the previous three years. For more information on the Washington State Board of Accountancy Peer Review rules, visit https://acb.wa.gov/firm-licensing/quality-assurance-review-qar-program.

Other than these changes, all remains the same for your firm’s peer review. In addition, representatives from Washington will continue to serve on the committee that accepts peer reviews. If you have any questions or concerns regarding the transition, please contact Julie at 425.586.1132 or jphipps@wscpa.org (through May 31) or me at 425.586.1134 or hwilliams@wscpa.org.

This article appears in the spring 2023 issue of the Washington CPA magazine. Read this article and others here.