Louisiana Administrative Code › Title 46 - PROFESSIONAL AND OCCUPATIONAL STANDARDS › Part XIX - Certified Public Accountants › Chapter 15 - Firm Permits to Practice; Attest Experience; Peer Review › Section XIX-1503 - Peer Review and Practice Monitoring Programs

Current through Register Vol. 50, No. 6, June 20, 2024
A. The board hereby requires firms that
				provide attest services, excluding engagements subject to a permanent
				inspection program of the Public Company Accounting Oversight Board, to
				participate in an approved peer review program enumerated in
				R.S.
				37:77(G)(2)(a)(i), (ii), and
				(iii), and comply with the applicable
				requirements of that program. The purpose of this requirement is to improve the
				quality of financial reporting and to assure that the public can rely on the
				fairness of presentation of financial information on which CPA firms issue
				reports.
1. Each licensee or CPA firm, which
				performs attest services in Louisiana, shall at its own expense undergo and
				complete a peer review that has been accepted by the administering entity at
				least once each three years, and have its initial peer review in accordance
				with standards not less stringent than the American Institute of Certified
				Public Accountants (AICPA) Standards for Performing and Reporting on Peer
				Reviews.
2. Peer reviews shall be
				administered by the Society of Louisiana Certified Public Accountants (LCPA) or
				by another board approved administering entity or sponsoring organization, such
				as, a state society of CPAs, the National Peer Review Committee, or state board
				of accountancy program with standards substantially equivalent to the AICPA's
				standards.
3. Peer review programs
				must be approved by the board and conducted pursuant to standards not less
				stringent than standards applied by the AICPA and may be subject to the
				following:
a. evaluations by the board or its
				designee that assess the effectiveness of the peer review program under its
				charge;
b. notifying the board of
				the participation of firms enrolled in the peer review program and dates of the
				firm's most recently accepted peer reviews;
c. notifying the board of a firm's failure to
				cooperate or otherwise fulfilling the requirements of the peer review program,
				or of a firm's withdrawal, removal, or other termination from enrollment in the
				program.
4. Peer review
				reports shall be made available to the board after a reviews acceptance date by
				the administering entity or its peer review committee. "Acceptance" shall be as
				described in the AICPA peer review standards and its interpretations. Timely
				completion of peer reviews and submission of, or making available reports, in
				the manner and periods required under this Section, are conditions of holding a
				valid permit.
a. For reviews commencing on or
				after January 1, 2009 and administered by the Society of Louisiana CPAs, peer
				review reports shall be made available or submitted to the board by the
				administering entity by making them available on a secure website or other
				secure means. Such reports must be made available within 45 days of the
				acceptance date.
b. For reviews
				administered by another board approved administering entity or sponsoring
				organization, such as, a state society of CPAs, National Peer Review Committee,
				or state board of accountancy program with standards substantially equivalent
				to the AICPA's standards, peer review reports shall be submitted to the board
				by the firm directly or made available or submitted to the board by the
				sponsoring organization or administering entity by making them available on a
				secure website or other secure means. Such reports must be submitted or made
				available within 45 days of the acceptance date.
5. The reviewed firm must retain any or all
				of the documents related to the peer review in accordance with AICPA peer
				review standards. Upon request of the board, the reviewed firm shall timely
				submit such documentation to the board.
6. The objective of this reporting rule is
				primarily to reinforce the boards efforts to ensure that only appropriately
				qualified CPA firms are engaged in the offering and rendering of attest
				services subject to peer review.
7.
				For good cause shown, the board may grant or renew permits for a reasonable
				period of time pending the completion of a peer review or the submission of a
				report thereon.