Code of Massachusetts Regulations › 252 CMR - BOARD OF REGISTRATION IN PUBLIC ACCOUNTANCY › Title 252 CMR 2.00 - Requirements for Certification › Section 2.15 - Quality Review Requirement

Current through Register 1525, July 5, 2024
(1)
Definitions
.
AICPA
means the American Institute of Certified Public Accountants.
Attest
means providing the following financial statement services:
(a) any audit or other engagement to be performed in accordance with the Statements on Auditing Standards (SAS);
(b) any review or compilation of a financial statement to be performed in accordance with the Statements on Standards for Accounting and Review Services (SSARS);
(c) any examination of prospective financial information to be performed in accordance with the Statements on Standards for Attestation Engagements (SSAE); and
(d) any engagement to be performed in accordance with the standards of the PCAOB; and
(e) any examination, review, or agreed upon procedures engagement to be performed in accordance with the SSAE, other than an examination described in 252 CMR 2.15(3).
Board
,
Licensee
,
Practice of Public Accountancy
, and
Quality Review
are defined as set forth in M.G.L. c. 112, § 87A.
Compilation
means providing a service to be performed in accordance with Statements on Standards for Accounting and Review Services (SSARS), that is presenting in the form of financial statements on information that is the representation of management (owners) without undertaking to express any assurance on the statements.
Engagement Review
. A quality review where the quality reviewer evaluates and reports on whether engagements submitted for review are performed and reported on in conformity with applicable professional standards in all material respects.
Multi-jurisdictional Practice Unit
means a practice unit with some members or employees who hold licenses issued by the Board and with other members or employees who have similar authority to practice public accountancy in one or more other jurisdictions.
PCAOB
means Public Company Accounting Oversight Board that conducts firm inspections of public accounting firms that perform audits for publicly-held companies.
Practice Unit
means:
(a) Each individual licensed by the Board who is engaged in the practice of public accountancy as a sole proprietor; or
(b) Each firm licensed by the Board to engage in the practice of public accountancy.
Quality Review Programs
includes the Sponsoring Organization's entire quality review process, including but not limited to the standards for administering, performing and reporting on quality reviews, oversight procedures, training, and related guidance materials.
Quality Reviewer
means a certified public accountant responsible for conducting the quality review holding a valid and active license to practice accounting in good standing by this state or some other state who meets the reviewer requirements of the quality review program. Qualifications of approved reviewers are stated in 252 CMR 2.15(3).
Report Acceptance Body
is the Sponsoring Organization's committee responsible for, but not limited to, the acceptance of quality review documents.
Review Oversight Board
means a committee of individuals licensed and appointed by the Board to provide oversight of the administration of approved quality review programs in order to provide reasonable assurance that quality reviews are being conducted and reported on in accordance with the minimum standards for performing and reporting on quality reviews.
Sponsoring Organization
means a Board-approved professional society, or other organization responsible for the facilitation and administration of quality reviews though use of its quality review program and quality review standards
System Review
. A quality review intended to provide the quality reviewer with a reasonable basis for expressing an opinion on whether, during the year under review:
(a) the reviewed firm's system of quality control for its accounting and auditing practice has been designed in accordance with quality control standards; and
(b) the reviewed firm's quality control policies and procedures were being complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects.