CPE Sneak Peek: Peer review standards

Serving as the AICPA's vice president of ethics and practice quality and sharing his peer review expertise with CPAs across the U.S. allows Jim Brackens, CGMA, CPA, to give back to the profession he loves.

For the first 30 years of his career, Brackens worked in both international and local public accounting firms, including his own accounting practice, in which he served closely-held businesses and not-for-profit organizations for 17 years. Brackens also served as a peer reviewer and performed more than 300 peer reviews of small accounting firms.

Throughout his career in public accounting, Brackens valued the opportunity to volunteer and have an impact on the accounting profession. He served on numerous committees with the AICPA and Virginia Society of CPAs, including the AICPA's Professional Ethics Executive Committee.

In 2006, an opportunity with the AICPA steered Brackens in a new direction. His experience and dedication to the profession made him a clear candidate to fulfill the role of vice president of ethics and practice quality, a new position forming within the AICPA.  

Brackens glady accepted the position and hasn't looked back since.

"For me, the opportunity to give back to this profession on a full-time basis was an opportunity I couldn’t pass up," he said. "That was 16 years ago, and I still feel the same way."

Providing strategic and tactical direction for the AICPA’s ethics division and peer review program, as well as the Employee Benefit Plan and Governmental Audit Quality Centers keeps Brackens incredibly busy, but he still finds time to share his wisdom and expertise with the profession as a CPE discussion leader.

Brackens' next CPE session with the OSCPA is coming up at the OSCPA's Governmental Accounting and Auditing Conference, May 5-6.

At Brackens' session, Clarified Peer Review Standards Update, attendees will gain a better understanding of the peer review process, including recently adopted standards, the impact of peer review changes on audit quality and the most frequent areas of noncompliance uncovered by peer reviewers.

Q&A with Jim Brackens, CPA, CGMA

Wire: Why should our members attend your session, Clarified Peer Review Standards Update?
Brackens: Participants will get an overview of the new standards and how the standards will impact them, but they will also receive valuable information to help them in preparing for their firm’s peer review, making their lives easier.

Wire: What do you enjoy most about your work with the AICPA in ethics and practice quality?
Brackens: The ability to make a difference for our member firms and the profession as a whole.

Wire: What are some of the biggest misconceptions you believe CPAs have about ethics and peer review in the profession?
Brackens: That the process is punitive and, in some cases, a waste of their time and resources. Our membership understands the need to have a robust Code of Conduct and supports the AICPA and state societies in holding our members accountable. However, many do not understand the overlap of our Code and peer review. Namely, the Code requires members to comply with the “technical” standards of the profession, such as accounting and auditing. Mainly through referrals from the Department of Labor or the Inspectors General of Federal agencies, a small number of our members find themselves being investigated by our ethics team. But these investigations, by and large, result in non-public remedial actions (requirements to take CPE, etc.) and only in the most egregious cases result in a public punitive measure (admonishment, suspension or expulsion).

Similarly, peer review, which is experienced by all member firms who practice in the accounting and auditing space, has remediation as its goal when reviewers find that firm's work is not in accordance with professional standards. Again, the goal is not to punish (though having to take additional CPE, have another practitioner review a subsequent work product, etc. may feel like punishment); rather, it is to improve the quality of the firm’s work.

Wire: What is the greatest lesson you have learned so far in your accounting career?
Brackens: That the need to learn never stops (at least until one retires), and it’s critical to develop those who are coming behind us to be sure our profession (and the public) is served well in the future.

Brackens' session, Clarified Peer Review Standards Update, is available to in-person attendees at the OSCPA's Governmental Accounting and Auditing Conference, May 5-6. 

Find out more about the OSCPA's Governmental Accounting and Auditing Conference, and register today!