Mississippi Administrative Code › Title 30 - Professions and Occupations › Part 1 - Mississippi State Board of Public Accountancy Rules and Regulations Appendix; Schedule of Fees › Chapter 5 - Compliance Assurance Program › Rule 30-1-5.2 - Definition

Current through June 25, 2024
The following words and phrases, when used in this chapter
				  and the sponsoring organization peer review program, shall have the following
				  meanings.
(a) Compliance Assurance
				Program (CAP) - The Board's oversight program to monitor peer review or
				equivalent programs through sponsoring organizations required to be registered
				with the Board and to monitor practice units" mandatory participation in peer
				review programs.
(b)Deficiency -
				one or more findings that the peer reviewer has concluded that due to the
				nature, causes, pattern, or pervasiveness, including the relative importance of
				the finding to the reviewed firm's system of quality control taken as a whole,
				could create a situation in which the firm would not have reasonable assurance
				of performing and/or reporting in conformity with applicable professional
				standards in one or more important respects. It is not a significant deficiency
				if the peer reviewer has concluded that except for the deficiency or
				deficiencies, the reviewed firm has reasonable assurance of performing and
				reporting in conformity with applicable professional standards in all material
				respects.
(c)Deficient report - any
				report which is pass with deficiencies or fail.
(d) Fail on a system review (audit is highest
				level of service) - there are significant deficiencies in the design of the
				firm's system of quality control, pervasive instances of noncompliance with the
				system as a whole, or both, resulting in several material failures to adhere to
				professional standards on engagements. Fail on an engagement review means the
				engagements submitted for review were not performed and/or reported in
				conformity with applicable professional standards in all material
				respects.
(e) Pass on a system
				review - the reviewed firm's system of quality control has been designed to
				meet the requirements of the quality control standards for an accounting and
				auditing practice and the system was being complied with during the peer review
				year to provide the firm with reasonable assurance of complying with
				professional standards in all material respects. Pass on an engagement review
				means nothing came to the reviewer's attention that the engagements submitted
				for review were not performed and reported in conformity with applicable
				professional standards in all material respects.
(f) Pass with deficiencies on a system review
				- the design of the firm's system of quality control created a condition in
				which the firm did not have reasonable assurance of complying with professional
				standards or that the firm's degree of compliance with its quality control
				policies and procedures did not provide it with reasonable assurance of
				complying with professional standards in all material respects with the
				exception of a certain deficiency or deficiencies that are described in the
				report. A pass with deficiencies report issued due to scope limitations
				specifically related to compilations would not be considered deficient for the
				purposes pursuant to these rules. Pass with deficiencies on an engagement
				review means that nothing came to the attention of the reviewer that caused
				him/her to believe on the engagements submitted for review that the firm did
				not comply with professional standards except for the deficiencies that are
				described in the report.
(g)Peer
				review due date - a date within six (6) months after the peer review year end,
				plus any extensions granted by the sponsoring organization or the
				Board.
(h) Peer review year end -
				the year end as determined by the firm and its reviewer.
(i) Performance of services" is deemed to
				start when an engagement letter is signed or agreement reached.
(j) Practice unit - A CPA firm as defined by
				the definitions of these regulations and required to be Board registered with a
				firm permit for the purpose of the practice of public accountancy including a
				sole proprietor, and licensees aggregated by the Board into a practice
				unit.
(k) Review program - the peer
				review conducted under the peer review program.
(l) Review year - the peer review covers a
				one-year (twelve-month) period. Engagements selected for peer review normally
				would have periods ending during the year under peer review.
(m) Significant deficiency - one or more
				deficiencies that the peer reviewer has concluded results from a condition in
				the reviewed firm's system of quality control or compliance with it such that
				the reviewed firm's system of quality control taken as a whole does not provide
				the reviewed firm with reasonable assurance of performing and/or reporting in
				conformity with applicable professional standards in all material
				respects.
(n) Sponsoring
				organization - An entity that has met, and at all relevant times continues to
				meet, the standards specified by the board for administering the peer reviews
				or equivalent programs. Qualified sponsoring organizations shall be registered
				with and approved by the Board concerning their adherence to the peer review
				minimum standards. The board shall periodically publish a list of sponsoring
				organizations which have applied for and received approval from the
				board.
Miss. Code Ann. §
				  73- 33-5 (f)