Effect of consecutive deficient reports
Effective Mar 5, 2026Ark. R. 2026-21 (eff. March 5, 2026)Arkansas Code § 17-12-203; Arkansas Code § 17-12-508
- (a) A licensee (including a succeeding firm licensee) which receives two (2) consecutive pass with deficiencies reports and/or one (1) fail report shall be referred to the Compliance Committee of the Arkansas State Board of Public Accountancy for enforcement investigation.
(b) Upon review of the deficient report or reports, the Compliance Committee may assess additional requirements, such as:
- (1) An accelerated peer review;
- (2) Additional CPE requirements; or
- (3) Preissuance review.
(c) If the accelerated review required by subsection (b) of this section results in a deficient report:
(1) The licensee may complete any attest service for which field work has already begun only if:
- (A) Prior to the issuance of any report, the engagement is reviewed and approved by a third party acceptable to the board or its designee; and
- (B) The engagement is completed within ninety (90) days of the acceptance of the peer review report and letter of response (when applicable) by the sponsoring organization;
- (d) A licensee may petition the board for a waiver from the provisions of this subpart.