Accountants, Board of Certified Public

Accountants, Board of Certified Public

Chapter 9: Peer Review

Effective Date: 09/24/2007 to 09/05/2008

Rule Type: Superceded Rules & Regulations

Reference Number: 061.0001.9.09242007

CHAPTER 9

PEER REVIEW

Section 1. General Provisions

(a) Every registrant whose accounting and auditing practice in Wyoming includes one or more engagements that are issued under the AICPA's Statements on Auditing Standards (SAS), Statements on Standards for Accounting and Review Services (SSARS), Statements on Standards for Attestation Engagements (SSAE) Financial Forecasts and Projections, and Standards for Financial and Compliance Audits contained in Government Auditing Standards issued by the US General Accounting Office is subject to review under the requirements of a practice monitoring program at least once every three and one-half years. Registrants that audit public companies must comply with the standards required under the Sarbanes-Oxley Act of 2002 and are subject to review as determined by the PCAOB.

(b) All reviews must be carried out in conformity with the AICPA's Standards for Performing and Reporting on Peer Reviews as of June 1, 2007 or the PCAOB's firm inspection standards as of February 6, 2006. Copies of all standards referenced in the Chapter may be purchased from the AICPA electronically at http://www.cpa2biz.com/Stores/AICPAs . The Government Accountability Office standards may be accessed electronically at http://www.gao.gov/govaudit . The PCAOB's rules and standards may be accessed electronically at http://www.pcaobus.org.

(c) Reviews must be carried out under the supervision of one of the following qualified organizations:

(i) the AICPA's Center for Public Company Audit Firms (CPCAF); (ii) the AICPA's Peer Review Program; (iii) a CPA Society fully involved in the AICPA's peer review program; (iv) the National Conference of CPA Practitioners (NCCPAP); or (v) the PCAOB.

(d) The Board may contact the qualified organization to verify the validity of the documentation submitted by the registrant.

Section 2. Requirements for Review

(a) All registrants should arrange and schedule their reviews as required under sub-

section (b) below and in compliance with the administrative procedures established by the qualified organization to the extent possible.

(b) A new registrant or a registrant previously exempted from review, must undergo review eighteen (18) months from the year-end of the first engagement (eighteen months from the report date if it is an attestation engagement including financial forecasts and projections). Alternatively a registrant may submit review documents, performed in accordance with the requirements of this chapter, issued within two years prior to the scheduled review.

(i) when a firm previously scheduled for a report or engagement review performs an engagement under the Statements on Auditing Standards or an examination of prospective financial statements under the Statements on Standards for Accounting and Review Services that would require the firm to have a system review, the firm shall undergo a system review within eighteen months from the year-end of the engagement (for financial forecasts and projections eighteen months from the date of the report) or by the registrant's next scheduled due date, whichever is earlier.

(c) A registrant is not subject to review if it represents to the board that it does not engage in the financial reporting in Wyoming as set forth in Section 1(a) of this Chapter or that it does not report on financial statements that are, or reasonably might be expected to be, used by a third party.

(d) Concurrently with the acceptance of an accounting and/or auditing engagement in Wyoming as set forth in Section 1(a) of this Chapter, a registrant is subject to practice monitoring and its designated certificate holder must within sixty (60) days notify the Board of the acceptance of an engagement and undergo a review as set forth in sub-section (b) of this section.

(e) The Board or its designated representative may, for good cause shown, extend the deadlines for compliance with this chapter to registrants who would otherwise be required to comply.

Section 3. Selection and Notification. In January of each calendar year, the Board will notify registrants, through designated certificate holders, of scheduled review dates and due dates for submission of peer review documents.

Section 4. Reporting to the Board.

(a) No later than June 30 of each year, registrants with reviews scheduled in the prior calendar year must file a complete copy of a peer review report as follows:

(i) If the report is unmodified or a report without comment, a copy of the report and acceptance letter;

(ii) If the report is modified or adverse: a copy of the report, letter of comment, letter of response, and the acceptance letter;

(iii) If a report review with comment: a copy of the report, any correspondence regarding sanctions imposed by the administering entity, and acceptance letter;

(iv) If an inspection report by the PCAOB, a copy of any final report, documentation of any significant issues and findings, and the registrant's response.

(b) A registrant who is employed by state or federal government or political subdivision thereof and who provides services that subject him to peer review under this chapter is not required to submit reports to the Board under this section.

Section 5. Findings

(a) If the review report is designated 'unmodified' or 'without comment', the Board shall take no further action provided the review was conducted in accordance with this Chapter.

(b) If the report is designated 'modified', 'adverse', or 'report review with comment' the Board may:

(i) require deficiencies be corrected within a specified time period;

(ii) require the registrant to undergo a peer review prior to the next regularly scheduled review;

(iii) require certificate holders employed by or associated with the registrant to complete continuing education in areas of deficiency;

(iv) require the registrant to maintain a minimum library of resource material;

(v) require the registrant to provide copies of interim inspection reports;

(vi) require any other action that will effectuate the purpose of this Chapter.

(c) If the registrant fails to comply with requirements established by this Chapter, the Board may proceed with the initiation of disciplinary action pursuant to W.S. 33-3-123 and Chapter 7 of the Rules and Regulations.

Section 6. Records. Copies of documents provided to show compliance with this Chapter are privileged and shall be purged from the Board's files in accordance with the Board's formally adopted retention schedules. Individual actions taken by the Board pursuant to Section 5(b) of this Chapter which do not result in the Board's initiating formal disciplinary action are not public actions and shall not be made a part of the Board's public record.