Cal. Bus. & Prof. Code § 5076

(a) In order to renew its registration in an active status or convert to an active status, a firm, as defined in Section 5035.1, shall have a peer review report of its accounting and auditing practice accepted by a board-recognized peer review program no less frequently than every three years.
(b) For purposes of this article, the following definitions apply:
1. (1) “Peer review” means a study, appraisal, or review conducted in accordance with professional standards of the professional work of a firm, and may include an evaluation of other factors in accordance with the requirements specified by the board in regulations. The peer review report shall be issued by an individual who has a valid and current license, certificate, or permit to practice public accountancy from this state or another state and is unaffiliated with the firm being reviewed.
2. (2) “Accounting and auditing practice” includes any services that were performed in the prior three years using professional standards defined by the board in regulations.
(c) The board shall adopt regulations as necessary to implement, interpret, and make specific the peer review requirements in this section, including, but not limited to, regulations specifying the requirements for board recognition of a peer review program, standards for administering a peer review, extensions of time for fulfilling the peer review requirement, exclusions from the peer review program, and document submission.
(d) Nothing in this section shall prohibit the board from initiating an investigation and imposing discipline against a firm or licensee, either as the result of a complaint that alleges violations of statutes, rules, or regulations, or from information contained in a peer review report received by the board.
(e) A firm issued a peer reviewed report with a rating of “fail,” as defined by the board in regulation, shall submit a copy of that report to the board. The board shall establish in regulation the time period that a firm must submit the report to the board. This period shall not exceed 60 days from the time the report is accepted by a board-recognized peer review program provider to the date the report is submitted to the board.
(f)
1. (1) A board-recognized peer review program provider shall file a copy with the board of all peer review reports issued to California-licensed firms with a rating of “fail.” The board shall establish in regulation the time period that a board-recognized peer review program provider shall file the report with the board. This period shall not exceed 60 days from the time the report is accepted by a board-recognized peer review program provider to the date the report is filed with the board. These reports may be filed with the board electronically.
2. (2) Nothing in this subdivision shall require a board-recognized peer review program provider, when administering peer reviews in another state, to violate the laws of that state.
(g) The board shall define a peer review report rating of “fail” in regulation.
(h) Any requirements imposed by a board-recognized peer review program on a firm in conjunction with the completion of a peer review shall be separate from, and in addition to, any action by the board pursuant to this section.
(i) Any peer review report with a rating of “fail” submitted to the board in conjunction with this section shall be collected for investigatory purposes.
(j) Nothing in this section affects the discovery or admissibility of evidence in a civil or criminal action.
(k) Nothing in this section requires any firm to become a member of any professional organization.
(l) A peer reviewer shall not disclose information concerning licensees or their clients obtained during a peer review, unless specifically authorized pursuant to this section, Section 5076.1, or regulations prescribed by the board.
(m) A board-recognized peer review program provider shall utilize a secure web-based application, such as Facilitated State Board Access, to provide the board with objective information and data relating to the progress, participation, and results of a peer review, including peer review reports, peer review status, and correspondence between the board-recognized peer review provider and the firm.
1. (1) Firms shall participate in the secure web-based application utilized by the board-recognized peer review provider.
2. (2) Firms shall authorize the board access to the secure web-based application and authorize the board-recognized peer review program provider to comply with this subdivision.