Mandatory Quality Review
Section 7410 of the State Education Law requires most registered public accounting firms to undergo quality review of the firm's attest services every three years. A firm that is subject to the mandatory quality review requirements must provide the Department a copy of the report for an acceptable quality review conducted within the prior three years, each time the firm registers with the Department, beginning with the firm's registration application for any registration period that begins on or after January 1, 2012.
Section 7410 exempts sole proprietorships and any firm that consists of 2 or fewer professionals from the quality review requirement unless the firm performs:
- 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 municipalities thereof; or
- performs attest services specifically required to be performed pursuant to New York state law