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Planning the Review for the Firm's Accounting and Auditing Practice Applicable to Non-SEe Issuers To plan the review of Rachlin LLP (flk/a Rachlin Cohen & Holtz LLP), we obtained an understanding of (1) the nature and extent of the finn's accounting and auditing practice, and (2) the design of the finn's system of quality control sufficient to assess the inherent and control risks implicit in its practice. Inherent risks were assessed by obtaining an understanding of the finn's practice, such as the industries of its clients and other factors of complexity in serving those clients, and the organization of the firm's personnel into practice units. Control risks were assessed by obtaining an understanding of the design of the finn's system of quality control, including its audit methodology. and monitoring procedures. Assessing control risk is the process of evaluating the effecti veness of the reviewed firm's system of quality control in preventing the performance of engagements that do not comply with professional standards. Performing the Review for the Firm's Accounting and Auditing Practice Applicable to Non-SEe Issuers Based on our assessment of the combined level of inherent and control risks, we identified practice units and seleetcd cngagcments within thosc units to test for compliance with the film's system of quality control. The engagements selected for review included engagements performed under the Government Auditing Standards, and audits of Employee Benefit Plans. The engagements selected for review represemed a cross-section of the finn's accounting and auditing pral:Lice with emphasis un higher-risk engagements. The engagement reviews included examining working paper files and reports and interviewing engagement personnel. The scope of the peer review also included examining selected administrative and personnel files to determine compliance with the firm's policies and procedures for the elements of quality control pertaining to independence, integrity, and objectivity; personnel management; and acceptance and continuance of clients and engagements. Prior to concluding the review, we reassessed the adequacy of scope and conducted a meeting with firm management to discuss our findings and recommendations.