Texas Administrative Code › Title 22 - EXAMINING BOARDS › Part 22 - TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY › Chapter 527 - PEER REVIEW › Section 527.4 - Enrollment and Participation

Current through Reg. 49, No. 28; July 12, 2024
(a)
				Participation in the program is required of each firm licensed or registered
				with the board that performs any attest services as defined in §901.002 of
				the Act (relating to General Definitions) and §501.52(4), (11) and (23) of
				this title (relating to Definitions). A firm that performs attest services
				subject only to PCAOB inspection is not required to participate in the program.
				A firm whose highest level of service is preparation engagements under SSARS is
				not required to participate in the program.
(b) A firm that does not perform attest
				services as set out in subsection (a) of this section shall annually submit a
				request for the exemption in writing to the board with an explanation of the
				services offered by the firm. A firm which begins providing attest services as
				set out in subsection (a) of this section shall notify the board of the change
				in status within 30 days of the change in status, provide the board with
				enrollment information within 90 days of the date the services were first
				provided and have a peer review performed within 18 months of the date the
				services were first provided.
(c)
				Each firm required to participate under subsection (a) of this section shall
				enroll in the applicable programs of an approved sponsoring organization within
				30 days from its initial licensing date or the performance of services that
				require a review. The firm shall adopt the review due date assigned by the
				sponsoring organization, and must notify the board of the peer review due date
				within 30 days of its assignment. In addition, a firm's subsequent review is
				due three years and six months after the year end of the previous peer review,
				or earlier as may be required by the sponsoring organization, a committee of
				the board or the board's executive director. It is the responsibility of the
				firm to anticipate its needs for review services in sufficient time to enable
				the reviewer to complete the review by the assigned review due date.
(d) In the event that a firm is merged,
				otherwise combined, dissolved, or separated, the sponsoring organization shall
				determine which firm is considered the successor firm. The successor firm shall
				retain its peer review status and the review due date.
(e) The board will accept extensions granted
				by the sponsoring organization to complete a review, provided the board is
				notified by the firm within 15 days of the date that an extension is
				granted.
(f) A firm that has been
				rejected by a sponsoring organization for any reason must make a request in
				writing to the board for authorization to enroll in a program of another
				sponsoring organization. Such request shall be made within 30 days of
				notification by the sponsoring organization.
(g) A firm choosing to change to another
				sponsoring organization may do so provided that the firm authorizes the
				previous sponsoring organization to communicate to the succeeding sponsoring
				organization any outstanding corrective actions related to the firm's most
				recent review. Any outstanding actions must be cleared and outstanding fees
				paid prior to transfer between sponsoring organizations.
(h) An out-of-state firm practicing in this
				state pursuant to a practice privilege provided for in §901.461 of the Act
				(relating to Practice by Certain Out-of-State Firms) and §
									517.1
				and §
									517.2
				of this title (relating to Practice by Certain Out of State Firms and Practice
				by Certain Out of State Individuals) must comply with the peer review program
				of the state in which the firm is licensed.
(i) An out-of-state firm practicing in this
				state pursuant to a practice privilege from a state without a peer review
				program must comply with §901.159 of the Act (relating to Peer Review) and
				Chapter 517 of this title (relating to Practice by Certain Out-of-State Firms
				and Individuals).
(j) An
				out-of-state firm practicing in this state pursuant to a practice privilege
				must submit its peer review (or equivalent) documentation upon request of the
				board.
(k) Interpretive Comment. If
				a firm is subject to inspections pursuant to PCAOB and also performs attest
				work not subject to such inspections, the firm must enroll in a peer review
				program for review of its non-public company attest work in addition to the
				firm inspection program required by the PCAOB.