[Government Audit] External Peer Review

■ An external peer review consists of (1) review of the auditors’ quality control practices, (2) consideration of internal monitoring, (3) review of selected auditors’ reports and documentation, (4) review of other documentation, and (5) interviews with professional staff. 

■ According to Government Auditing Standards, an audit organization conducting an audit in accordance with these standards must have an appropriate internal quality control system in place and undergo an external peer review at least every 3 years. For example, a CPA seeking to enter into a contract to perform an audit should provide the CPA’s most recent external peer review report to the party contracting for the audit.