It is not only companies and entities in general that are subject to the audit process. Auditors also undergo audits themselves.
"Peer Review" (or, more technically, "External Quality Peer Review") is the process of monitoring the quality control of work performed by independent auditors.
This process aims to evaluate the procedures adopted by the accountant acting as an independent auditor, and by the audit firm, in order to ensure the quality of the audit and assurance engagements performed.
Every 4-year cycle, independent auditors are selected to undergo the Peer Review process, and must therefore appoint and engage a reviewing auditor to verify compliance with the technical requirements necessary for the proper completion of each audit engagement.
Given that client information is subject to review by a reviewing auditor, access to it is granted only upon formal, express authorization from each client selected for review. Rest assured, however: members of the CRE — External Review Committee of the CFC (Federal Accounting Council) — and other reviewing teams are prohibited from disclosing any information obtained during participation in Peer Review, at any stage of the work (see more in Confidentiality).
This process takes into account technical compliance across every essential stage of an audit and assurance engagement, so that, at its conclusion, the reviewed auditor can identify any shortcomings in its procedures and adopt the necessary corrective measures — just as in an audit engagement for any other company.
The final process is forwarded to the CRE — External Review Committee of the CFC — for review and assessment of the technical and professional quality of the national audit market.