Mississippi Society of CPAs Annual Report on Oversight for 2016 Date Issued November 30, 2017

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Wilfrid Lawrence
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1 General description of oversight process: Mississippi Society of CPAs Annual Report on Oversight for 2016 Date Issued November 30, 2017 The Peer Oversight Committee will annually perform oversight on at least 2% of the reviews scheduled for the current year. Within the 2% selected, there will be two system and two engagement reviews selected for oversight. The Oversight Chair asks the AE for assistance on choosing which reviews to oversight by looking at their scheduling form. Within the two (2) system reviews selected, GAGAS engagements and ERISA engagements are covered. The selections are randomly and/or targeted based on the above system review criteria. A Peer Oversight Committee member will be assigned to perform the oversight. The oversight will be performed in accordance with the guidelines listed in the AICPA Peer Oversight Handbook. That Committee member will be present for, at a minimum, the exit conference. The Committee member will complete the applicable exhibits in the Oversight handbook and submit those exhibits along with a written report to the Peer Committee for approval. Committee members will be reimbursed for their travel expenses. er Resume Verification: All Mississippi reviewer resumes must be verified over a 3 year period, with 33% of reviewer resumes being verified each year by the MS Peer Oversight Chair. The verification process is performed in accordance with the guidance provided in the AICPA PRP Oversight Handbook. Administrative Oversight: Every year, the committee chair accompanies the oversight committee chair to perform the administrative oversight to ensure that the peer review program is being administered in accordance with the guidance as issued by the AICPA Peer Task Force. Technical er Oversight: Each year the Oversight chair performs an evaluation of the technical reviewer. Summary of Peer s: The Mississippi Society of CPAs (MSCPA) serves as the administering entity for the AICPA Peer in the state of MS, and also administered the MSCPA Peer (which operates exactly the same as the AICPA Peer ) for firms not enrolled in the AICPA Peer. Participation in the program is required of each practice unit registered with the Mississippi State Board of Public Accountancy (MSBPA) which issues reports on accounting and auditing engagements, including audits, reviews, compilations and respective financial information. The MSBPA has designated MSCPA as an authorized administering entity able to approve peer review reports issued for firms enrolled in peer review programs administered by MSCPA 1

2 2) Number of Enrolled Firms by Number of Professionals* as of November 30, 2017 AE Peer Peer Sole Practitioners to No A & A 6 Total Enrolled Firms * Professionals are considered all personnel who perform professional services, for which the firm is responsible, whether or not they are CPAs. The number of enrolled firms is as of November 30, (The table does not include 22 firms that are enrolled but perform no Audit and Accounting services.) 2

3 3) Results of Peer s Performed During the Year(s) 2016 a) Results by Type of Peer and Report Issued Note: The above data reflects peer review results as of November 30, Approximately 1% of 2016 (yr.) reviews are in process and their results are not included in the totals above. ^AICPA NM Peer Peer System s: Pass 1 26 Pass with deficiency(ies) 7 Fail Subtotal System 1 33 Engagement s: Pass 9 52 Pass with deficiency(ies) 1 2 Fail 2 Subtotal - Engagement Totals

4 b) Number and Reasons for Report Modifications Reasons for Report Modifications Relevant Ethical Requirements AE Peer AICPA Peer Leadership responsibilities for quality within the firm 1 Human Resources Engagement Performance 4 Monitoring 3 Totals 0 8 Note: The above data reflects peer review results as of November 30, Approximately 1% of 2016 (yr.) reviews are in process and their results are not included in the totals above. 4

5 c) Number of Engagements Not Performed or Reported on in Accordance with Professional Standards in All Material Respects Note: The above data reflects peer review results as of November 30, Approximately 1% of 2016 (yr.) reviews are in process and their results are not included in the totals above. AE Peer Number of Engagement AICPA Peer Number of Engagements Audits Single Audit Act (A-133) Audits Governmental All Other 18 1 Audits ERISA 3 s 2 22 Compilations with Disclosures Compilations without Disclosures ESOP Plan 1 1 Other SSAEs 29 3 Agreed-Upon Procedures 1 12 Def-Contrib. Plans-Ltd&Full Scope 7 2 (excluding 403(b) plans Compiled financial forecast 1 Def Benefit Plans limited & full scope 2 1 Preparation eng with disclosures 3 Preparation eng without disclosures 1 8 Examinations of written assertions 1 Totals ed Not Performed ed Not performed in Accordance in Accordance with with Professional Professional Standards Standards 5

6 d) Summary of Required Follow-up Actions Note: The above data reflects peer review results as of November 30, Approximately 1% of 2016 (yr.) reviews are in process and their results are not included in the totals above. AE Peer AICPA Peer Type of Follow-Up Action Agree to take certain Continuing Prof. Education (CPE) 4 9 Submit to TC review of Sub engagement 3 6 Submit to TC - revisit 2 Preissuance 2 Resolution of open questions 1 Join EBPAQC 1 Total:

7 III. Oversight Process Oversight Results a) Peer reviews AICPA Member Firms Type of Peer (Sys, Eng, Rpt) 1 - System GAGAS 1 - System ERISA 2 - Engagements Oversight Included Must Select Engagement (ERISA, GAGAS, FDIC, NONE) AICPA Non-Member Firms * Type of Peer (Sys, Eng, Rpt) None Oversight Included Must Select Engagement (ERISA, GAGAS, FDIC, NONE) None 1

8 b) Verification of reviewer s resumes Total Number of Peer ers Total Number of Resume s Verified for Year % of Total Verified % c) Administrative oversights Date of Last Administrative Oversight Performed by the Administering Entity Date of Last On-site Oversight Performed by the AICPA Oversight Task Force (covers only the AICPA Peer ) October 2017 November

I d a h o P e e r R e v i e w A n n u a l R e p o r t o n O v e r s i g h t D a t e I s s u e d A p r i l 2 9,

I d a h o P e e r R e v i e w A n n u a l R e p o r t o n O v e r s i g h t D a t e I s s u e d A p r i l 2 9, 2 0 1 1 Administering Entity Oversight Process and Procedures General Guidelines: The Committee