"This exposure draft is another step in our continuing holistic initiative to further the profession's efforts to move the audit quality needle," James Brackens, CPA, CGMA, the Institute's vice president for ethics and practice quality," said in a prepared statement.

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The board outlined the changes as follows:
• Enhance the peer review of the firm's system of quality control to better assist the team captain and firm in identifying systemic causes and appropriate remediation of nonconforming engagements and systemic weaknesses;
• Supplement the existing guidance for peer reviewer, reviewed firm, technical reviewer and Report Acceptance Body responsibilities for nonconforming engagements;
• Clarify the timing of when results of the peer review should be communicated to the firm to allow time for the firm to identify appropriate remediation;
• Clarify the guidance for drafting descriptions of findings, deficiencies, and significant deficiencies;
• Clarify the peer review report model and provide greater transparency on the results of the review;
• Clarify the required firm representations for System and Engagement Reviews;
• Clarify information the AICPA and administering entities may provide about a review to third parties.