To demonstrate that peer evaluation is an appropriate means of improving written composition, particularly in terms of audience and goal orientation, the use of peer evaluation as a teaching method is discussed and then the connection between peer evaluation and audience awareness is drawn. Based on observation of Dutch 17-year-old students, the following reasons for having students' written work evaluated by the writers' peers were adduced: (1) students learn more about writing, (2) students are better at judging audience orientation, (3) students are better at telling each other what is good and what is bad, (4) students make multiple and analytical evaluation possible, (5) peer evaluation leads to increased writing frequency, and (6) peer evaluation means immediate feedback. Both educational theory and communication theory support these observations, as does research done in Holland on the effect of peer evaluation, which has shown that students are as effective as teachers in evaluating peer writing. Other studies have shown neither positive nor negative effects of peer evaluation, perhaps because they measured inappropriate aspects of written composition ability. A proposed set of experiments examining the influence of peer evaluation on goal orientation, audience orientation, and news value will better reflect the benefits of peer evaluation. Because the peer audience is both immediate and "real," students will be more aware of their audience and the metacognitive aspects of their writing will be enhanced. (Appendixes include an evaluation schedule and a chart summarizing pertinent research. Notes and references are included.) (SKC)