Oklahoma Administrative Code › Title 10 - Oklahoma Accountancy Board › Chapter 15 - Licensure and Regulation of Accountancy › Subchapter 33 - Peer Review › Section 10:15-33-2 - Special definitions

Current through Vol. 41, No. 20, July 1, 2024
The following words and terms used in this subchapter shall
				  have the following meanings, unless the context clearly indicates
				  otherwise.
"Deficiency"
in a system reviewmeans 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.
"Deficiency"
in an engagement review is one or
				  more findings that the review captain concludes are material to the
				  understanding of the financial statements or information and/or related
				  accountant's reports or that represent omission of a critical procedure,
				  including documentation, required by applicable professional standards. When
				  the review captain concludes that deficiencies are not evident on all of the
				  engagements submitted for review, or when the exact same deficiency occurs on
				  each of the engagements submitted for review and there are no other
				  deficiencies, such deficiencies are communicated in a report with a peer review
				  rating of pass with deficiencies.
"Deficient report"
means any report which is
				  pass with deficiencies or fail.
"Engagement Review"
means a peer review where
				  the peer reviewer evaluates and reports on whether engagements submitted for
				  review by the practice unit are performed and reported on in conformity with
				  applicable professional standards in all material respects.
"Fail"
on a system review (audit is highest
				  level of service) means significant deficiencies have been identified and the
				  firm's system of quality control is not suitably designed to provide the firm
				  with reasonable assurance of performing and reporting in conformity with
				  applicable professional standards in all material respects or the firm has not
				  complied with its system of quality control to provide the firm with reasonable
				  assurance of performing and reporting in conformity with applicable
				  professional standards in all material respects.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.
				  A fail report with deficiencies related specifically to compilations would not
				  be considered deficient for the purposes pursuant to these rules.
"Pass"
on a system review means the reviewed
				  firm's system of quality control for the accounting and auditing practice has
				  been suitably designed and complied with to provide the firm with reasonable
				  assurance of performing and reporting in conformity with applicable
				  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.
"Pass with deficiencies"
on a system review
				  means the design of the firm's system of quality control for the accounting and
				  auditing practice has been suitably designed and complied with to provide the
				  firm with reasonable assurance of performing and reporting in conformity with
				  applicable professional standards in all material respects with the exception
				  of a certain deficiency or deficiencies that are described in the report.Pass
				  with deficiencies on an engagement review means that nothing came to the
				  attention of the reviewer that caused him/her to believe that the engagements
				  submitted for review were not performed and reported on in conformity with
				  applicable professional standards in all material respects except for the
				  deficiencies that are described in the report. A pass with deficiencies report
				  with deficiencies related specifically to compilations would not be considered
				  deficient for the purposes pursuant to these rules.
"Peer review due date"
must be a date within six
				  (6) months after the peer review year end, plus any extensions granted by the
				  sponsoring organization or the Board.
"Peer review program"
means a board-approved
				  study, appraisal, or review of one or more aspects of the attest or compilation
				  work of a permittee or licensee of a registered firm in the practice of public
				  accounting, by a person or persons who hold licenses in this or another
				  jurisdiction and who are not affiliated with the person or firm being
				  reviewed.
"Peer review year end"
means the year end as
				  determined by the firm and its reviewer.
"Performance of services"
is deemed to start
				  when an engagement letter is signed or agreement reached.
"Review year"
means 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.
"Significant deficiency"
in a system reviewmeans
				  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.
"Significant deficiency"
in an engagement review
				  means the review captain concludes that all engagements submitted for review
				  were not performed and/or reported on in conformity with applicable
				  professional standards in all material respects. The exception is when more
				  than one engagement has been submitted for review, the exact same deficiency
				  occurs on each of those engagements, and there are no other deficiencies, which
				  ordinarily would result in a report with a peer review rating of pass with
				  deficiencies.
"Sponsoring organization"
means a Board-approved
				  professional society, or other organization responsible for the facilitation
				  and administration of peer reviews through use of its peer review program and
				  peer review standards.The Board shall periodically publish a list of sponsoring
				  organizations, which have been approved by the Board.
"System Review"
means a peer review intended to
				  provide the peer reviewer with a reasonable basis for expressing an opinion on
				  whether, during the year under review:
a) the reviewed practice unit's system of
				quality control for its accounting and auditing practice has been designed in
				accordance with quality control standards and
b) the reviewed practice unit's quality
				control policies and procedures were being complied with to provide the
				practice unit with reasonable assurance of performing and reporting in
				conformity with applicable professional standards in all material
				respects.
Added at 21 Ok Reg 1981,
				  eff 7-1-04; Amended at 22 Ok Reg 1691, eff 7-1-05; Amended at 23 Ok Reg 2123,
				  eff 7-1-06; Amended at 25 Ok Reg 1513, eff
				  7-1-08