Breaking Down the New Annual Practice Questionnaire for Peer Review: What CPA Firms Need to Know

Welcome back to the Genuine Learning Blog from Galasso Learning Solutions―your trusted resource for all things accounting and auditing standards! Today, we’re spotlighting an important update from the AICPA that’s sure to impact peer-reviewed firms across the country: the new Annual Practice Questionnaire. If you haven’t heard about this requirement yet, you’re in the right place ― we’ll unpack the who, what, when, where, and why so you’re ready to take action.

What’s the Annual Practice Questionnaire All About?

The Annual Practice Questionnaire for Peer Review was officially approved by the AICPA in November 2025, making it a recent and significant development for firms enrolled in the AICPA’s peer review program. Unlike some other requirements, completion of this questionnaire is not optional—it’s mandatory for every participating firm.

The goal? To proactively address emerging risks in accounting and auditing that could affect the peer review process, the profession as a whole, and the public’s trust. By gathering key information annually, the AICPA aims to help safeguard quality in a rapidly changing environment.

Demystifying “Emerging Areas”

You might be wondering: what counts as an “emerging area”? It’s a broad category encompassing new or evolving industries, service levels, audit areas, or even specific aspects of a firm’s quality management system. If these areas aren’t addressed properly, they could become threats to audit quality—and, by extension, the trustworthiness of the profession.

Some real-world examples you’ll find on the questionnaire include:

• AI-driven technologies

• Digital assets and cryptocurrency

• ESG (Environmental, Social, and Governance) considerations

• Complex revenue recognition scenarios

The 5 W’s―Fast Facts for Firms

Who Will Receive the Questionnaire?

The annual questionnaire is sent directly to the managing partners and designated peer review contacts at all firms participating in the AICPA peer review program. If you hold either of these roles, you’ll see this questionnaire in your inbox.

What’s On the Questionnaire?

Expect around 5 to 10 focused questions on emerging areas like generative AI, digital assets, and more. The intent is to spotlight activities with higher risk profiles—helping both your firm and the AICPA stay ahead of potential quality concerns.

When Will It Arrive?

Mark your calendars: the first questionnaire rolls out June 1, 2026, and it will repeat annually from then on. Remember, this is not a one-and-done compliance item—it’s a yearly commitment.

What If You Don’t Participate?

Non-compliance is treated like any other peer review requirement. Firms that don’t complete the questionnaire are subject to the peer review program’s drop process (assuming their review hasn’t started) and will receive multiple reminders before removal. It’s best not to let it get to that point!

Why Is This Important?

The main objective is to identify and understand your firm’s involvement in emerging areas, including volumes and demographics, to better customize support and resources. After you submit your questionnaire, you’ll receive relevant resource highlights via email from the AICPA’s Prima platform, tailored to the emerging areas you identified. Not only does this help your staff stay skilled and compliant, it promotes timely, high-quality engagements and supports successful peer review outcomes.

Stay Proactive, Not Reactive

Today’s evolving risk landscape means that successful peer reviews now require continuous attention, not last-minute scrambling. Completing this annual questionnaire is your chance to get ahead and ensure your team is equipped with the right knowledge and tools.