Bill Text: NY S06026 | 2017-2018 | General Assembly | Amended
Bill Title: Relates to mandatory peer review of certified public accountants.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-06-21 - SUBSTITUTED BY A7895A [S06026 Detail]
Download: New_York-2017-S06026-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 6026--A 2017-2018 Regular Sessions IN SENATE May 10, 2017 ___________ Introduced by Sen. HELMING -- read twice and ordered printed, and when printed to be committed to the Committee on Higher Education -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the education law, in relation to mandatory peer review of certified public accountants The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subparagraph 5 of paragraph c of subdivision 3 of section 2 7408 of the education law, as amended by chapter 651 of the laws of 3 2008, is amended to read as follows: 4 (5) That the firm failed to undergo a [quality] peer review of its 5 attest services pursuant to section seventy-four hundred ten of this 6 article at least once every three years; or 7 § 2. Section 7410 of the education law, as added by chapter 651 of the 8 laws of 2008, is amended to read as follows: 9 § 7410. Mandatory [quality] peer review. 1. The department shall 10 require as a condition to renewal of registrations under section seven- 11 ty-four hundred eight of this article, that unless otherwise exempted by 12 the department, applicants for firm registrations, [with the exception13of sole proprietorship firms or firms with two or fewer accounting14professionals, including certified public accountants or public account-15ants, or any combination thereof,] undergo, no more frequently than once 16 every three years, except pursuant to a disciplinary action brought 17 under section seventy-four hundred eight of this article, [quality] peer 18 reviews of the firm's attest services conducted in such manner as the 19 commissioner shall specify in regulations, and such review shall include 20 a verification that individuals in the firm who are responsible for 21 supervising attest services sign or authorize someone to sign the 22 accountant's report on the financial statements on behalf of the firm EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11586-05-7S. 6026--A 2 1 meet the competency requirements set out in the professional standards 2 for such services, provided that any such regulations: 3 a. shall include reasonable provisions for compliance by an applicant 4 for firm registration showing that it has, within the preceding three 5 years, undergone a [quality] peer review in this state or a peer review 6 in another state that is a satisfactory equivalent to [quality] peer 7 review required pursuant to this section; 8 b. shall require, with respect to any organization administering 9 [quality] peer review programs contemplated by paragraph a of this 10 subdivision, that it be subject to evaluations by the department or its 11 designee, to periodically assess the effectiveness of the [quality] peer 12 review program under its charge; 13 c. shall require the [quality] peer review to be conducted by review- 14 ers acceptable to the department in accordance with the commissioner's 15 regulations[, from a roster of qualified reviewers established by the16department]; and 17 d. may require with respect to [quality] peer reviews contemplated by 18 paragraph a of this subdivision that firms undergoing [quality] peer 19 reviews and organizations administering [quality] peer review programs 20 timely remit such [quality] peer review reports to the state board for 21 public accountancy and such reports shall be maintained by the board in 22 a manner consistent with subdivision [three] two of this section. 23 2. [Except as provided for in subdivision four of this section, noth-24ing in this section shall be construed to require sole proprietorship25firms or firms with two or fewer accounting professionals, including26certified public accountants or public accountants, or any combination27thereof, to undergo quality review, however, such firms may choose to28voluntarily undergo quality review in accordance with this section.293.] Notwithstanding any provision of law to the contrary, the reports 30 submitted in accordance with subdivision one of this section shall be 31 confidential and shall not constitute a public record and shall not be 32 subject to disclosure under articles six and six-A of the public offi- 33 cers law. However, when any such report is admitted into evidence in a 34 hearing held by the department, it shall then be a public record subject 35 to disclosure under articles six and six-A of the public officers law. 36 [4.] 3. Notwithstanding any provision of law or regulation to the 37 contrary, a firm that performs attest services for any New York state or 38 municipal department, board, bureau, division, commission, committee, 39 public authority, public corporation, council, office, or other govern- 40 mental entity performing a governmental or proprietary function for New 41 York state or any one or more municipalities thereof, or performs attest 42 services specifically required to be performed pursuant to New York 43 state law, or performs attest services for any federal governmental 44 entity pursuant to federal law, shall be [required to undergo an45external peer review] in conformity with the requirements pursuant to 46 the government auditing standards of the comptroller general of the 47 United States. 48 § 3. This act shall take effect immediately.
