Mandatory Quality Review Program Effective January 1, 2012
Firms scheduled to renew their triennial registration for periods beginning on and after January 1, 2012 may be required to participate in the Mandatory Quality Review Program, pursuant to changes to the public accountancy law that went into effect in 2009. If the firm is required to participate, but is not currently enrolled in an acceptable peer review program, the firm will be required to enroll in a peer review program before the Board can renew the firm’s triennial registration. If the firm is already enrolled in a peer review program, they will be required to submit proof of enrollment and allow the Board access to their most recent peer review before the Board can renew the firm’s triennial registration.
Under the law, a firm performing attest services in New York State or for NYS clients MUST enroll and participate in a peer review program if:
- The firm, other than an unincorporated sole proprietorship, has three or more CPAs and/or NYS Public Accountants (PAs) or;
- The firm, including unincorporated sole proprietorships, provides governmental attest services as defined in Section 7410(4) of Article 149 of the Education Law.
Firms not required to participate may choose to participate in the peer review program on a voluntary basis; particularly if the firm’s CPAs and/or PAs who sign and supervise do not have sufficient experience to meet the mandatory Competency Requirements as defined in Part 29.10.a.13 of the Rules of the Regents that went into effect in January 2011.
Attest services include audits, reviews and examinations conducted under the following standards: Statements on Auditing Standards, Statements on Standards for Accounting and Review Services, Statements on Standards for Attestation Engagements, Government Auditing Standards, and audits of non-SEC issuers performed pursuant to the standards of the PCAOB.
Governmental attest services include attest services for any New York State or municipal department, board, bureau, division, commission, committee, public authority, public corporation, council, office, or other governmental entity performing a governmental or proprietary function for New York State or any one or more of New York’s municipalities, or any attest service specifically required to be performed pursuant to New York State law.
Qualifying governmental attest services include audits and reviews required to be submitted to the NYS Charities Bureau, Attorney General’s Office, State Education Department, Health Department, Office of the NYS Comptroller, or any NYS agency. Qualifying municipal services include attest services required by any municipality of New York State, including New York City. Audits required by law for schools, fire districts, fire companies, rental properties, non-profits and other providers are included within the scope of Section 7410(4).
Any questions should be directed to the Board at email@example.com.