1. (a) Prior to conducting a peer review, an individual must be approved by the Board.

2. (b) In order to receive approval from the Board, a peer reviewer shall:

   1. (1) have and maintain an active license as a certified public accountant in this or any other state;
   2. (2) possess a level of knowledge of applicable professional standards acceptable to the Board;
   3. (3) possess at least 5 years recent experience in the practice of public accounting;
   4. (4) have received a passing report on the most recent peer review of the prospective peer reviewer; and
   5. (5) complete an appropriate training course as determined by the Board.
3. (c) In order to serve as a team captain of a system review, a peer reviewer must have and maintain ownership or management of a firm or comparable responsibility.
4. (d) A peer reviewer shall have no connection to the licensee or permit holder being reviewed that might impair the peer reviewer's independence.

5. (e) A peer reviewer shall:

   1. (1) prepare a report of findings in accordance with the standards for performing and reporting on peer reviews of the American Institute of Certified Public Accountants; and
   2. (2) maintain the report for a period of 3 years.

6. (f) A peer reviewer shall provide a copy of the report to the Board only if the licensee or permit holder being reviewed has:

   1. (1) been directed to take corrective action and has failed to satisfy the peer reviewer that such action has been completed in a timely manner;
   2. (2) received a second consecutive report indicating pass with deficiencies; or
   3. (3) received a failing report.
7. (g) A peer reviewer shall comply with all Board regulations and directives regarding the peer review process.

8. (h) The Board may revoke its approval of a peer reviewer under this section if the peer reviewer:

   1. (1) violates any provision of this title;
   2. (2) violates any regulation adopted by the Board; or
   3. (3) is sanctioned by any state board of accountancy or any unit of State or federal government.

Added by Acts 2005, c. 88, § 1, eff. Oct. 1, 2005. Amended by Acts 2009, c. 220, § 1, eff. June 1, 2009.