1. (a)

   1. (1) A practice review is to be conducted annually on one third (1/3) of the licensees on a rotating basis.
   2. (2) A practice review may be required more frequently as provided herein.

2. (b)

   1. (1) The Arkansas State Board of Public Accountancy will send an email to one-third (1/3) of its licensees annually to inform them that their practice review is due.
   2. (2) The practice review covers the period since the licensee’s last practice review or since becoming licensed.

   3. (3) The recipient shall respond to the email within the time specified with one (1) of the following responses:

      1. (A) No reports issued;
      2. (B) Compilation reports only issued; or
      3. (C) Attest reports issued.
3. (c) If a licensee did not issue any type of compilation or attest report during the practice review period, they shall notify the board by completing the online process entitled No Reports Issued.
4. (d) If a licensee issued compilation reports and did not issue any attest reports during the practice review period, they shall notify the board by completing and submitting a Practice Review Survey form and following the Quality Review procedures outlined in 17 CAR § 236-1303.
5. (e) If a licensee issued attest reports during the practice review period, they shall notify the board by completing and submitting a Practice Review Survey form and following the Peer Review procedures outlined in Subpart 19.

6. (f) The following actions shall be a basis for disciplinary action as provided in Arkansas Code § 17-12-601:

   1. (1) Failure to respond to a practice review within the time specified on the initial notification;
   2. (2) Failure to submit a practice review survey when reports were issued during the practice review period;
   3. (3) Failure to submit compilation reports for quality review when compilation reports were issued during the practice review period; and
   4. (4) Failure to meet the peer review requirements of Arkansas Code § 17-12-508 and Subpart 19 when attest reports were issued during the practice review period.

7. (g) A licensee registered in a jurisdiction other than Arkansas that is not required to register in this state pursuant to Arkansas Code § 17-12-311 or § 17-12-401 and that performs engagements for clients in this state that are performed in accordance with Statements on Standards for Accounting and Review Services (SSARS), such as compilations and reviews, must receive in lieu of the quality review process under 17 CAR § 236-1310 either:

   1. (1) An acceptable peer review performed by a CPA or CPA firm under Subpart 19; or
   2. (2) An acceptable quality review performed under the rules of the state of licensure.

Codification Notes: "PA" means public accountant.