However, a firm in this category can elect to undergo an on-site review. Although the firm's quality control system will not be tested in an off-site review, the firm must have a quality control system that provides it with reasonable assurance of complying with professional standards. The objectives of an off-site review are accomplished by reviewing selected financial statements and the reports issued by the firm, along with certain background information, to determine that those financial statements and reports comply with professional standards. The reviewer does not attempt to evaluate the adequacy of the firm's quality control system. As a result, off-site reviews consist only of reading the accountant's report and the related historical or prospective financial statements submitted by the firm, together with certain background information and representations provided by the reviewed firm.
Firms prepare for an off-site review by summarizing the number of engagements for each partner.
The reviewer will request one review engagement and one compilation engagement with disclosures from each partner. In addition, one compilation without disclosures will be selected for the entire firm. The reviewer doesn't request specific clients from the firm. Instead, the firm is asked to submit engagements within particular industries. The actual selection of engagements will be left to the firm being reviewed.