1. A. Continuing professional education: IPAs performing annual financial and compliance audits, or other attest engagements under GAGAS shall ensure that all members of their staff comply with the CPE requirements of the most recent revision of GAGAS.

2. B. Peer review requirements: IPAs performing annual financial and compliance audits, or other attest engagements under GAGAS shall comply with the requirements of the most recent revision of GAGAS relating to quality management, engagement quality reviews and external peer review.

   1. (1) An audit firm’s due date for its initial peer review is 18 months from the date the firm enrolled in the peer review program or should have enrolled, whichever is earlier. A firm’s subsequent peer review is due three years and six months from the previous peer review year end.

   2. (2) The IPA firm profile submission to the state auditor shall include copies of the following peer review documentation:

      1. (a) the peer review report for the auditor’s firm;
      2. (b) if applicable, detailed descriptions of the findings, conclusions and recommendations related to deficiencies or significant deficiencies required by GAGAS 5.91;
      3. (c) if applicable, the auditor's response to deficiencies or significant deficiencies; and
      4. (d) the letter of acceptance from the peer review program in which the firm is enrolled.
   3. (3) A peer review rating of “failed” on the auditor’s peer review may disqualify the IPA from performing New Mexico governmental audits.
   4. (4) During the procurement process IPAs shall provide a copy of their most recent external peer review report to the agency with their bid proposal or offer. Any subsequent peer review reports received during the period of the contract shall also be provided to the agency.
   5. (5) The peer review shall meet the requirements of GAGAS 5.60 to 5.95.
3. C. State auditor engagement quality reviews: The state auditor may perform its own engagement quality review of IPA audit reports and working papers. An IPA that is included on the state auditor’s list of approved firms for the first time may be subject to an OSA engagement quality review of the IPA’s working papers. This review may be conducted as soon as the documentation completion date, as defined by AU-C Section 230, has passed (60 days after the report release date). During the work paper review process, the state auditor shall take into consideration the fact that AICPA peer reviews are performed on a risk-based or key-element approach looking for systemic problems, while the state auditor reviews are engagement-specific reviews.

[2.2.2.14 NMAC - Rp, 2.2.2.14 NMAC, 4/21/2026]