22 Tex. Admin. Code § 527.10 - Peer Review Report Committee
A PRRC is comprised of CPAs practicing public accountancy and formed by a sponsoring organization for the purpose of accepting peer review reports submitted by firms on peer review engagements.
(1) Each member of a PRRC must be active in
the practice of public accountancy at a supervisory level in the assurance or
auditing function while serving on the committee. The member's firm must be
enrolled in an approved practice-monitoring program and have received a report
with a rating of pass on its most recently completed peer review. A majority of
the committee members must satisfy the qualifications required of system peer
review team captains as established and reported in the AICPA Standards
.
(2) Each member of a PRRC must be
approved for appointment by the governing body of the sponsoring
organization.
(3) In determining
the size of a PRRC, the requirement for broad industry experience, and the
likelihood of some members needing to recuse themselves during the
consideration of some reviews as a result of the members' close association to
the firm or because they performed the review, shall be considered.
(4) No more than one PRRC member may be from
the same firm.
(5) The PRRC
members' terms shall be staggered to provide for continuity.
(6) A PRRC member may not concurrently serve
as:
(A) a member of any state's board of
accountancy; or
(B) a member of any
state's CPA society's ethics committee.
(7) A PRRC member may not participate in any
discussion or have any vote with respect to a reviewed firm when the committee
member lacks independence as defined in §
501.70 of
this title (relating to Independence) or has a conflict of interest. Examples
of conflicts of interest include, but are not limited to:
(A) the member's firm has performed the most
recent peer review of the reviewed firm's accounting and auditing
practice;
(B) the member served on
the review team, which performed the current or the immediately preceding
review of the enrolled firm; or
(C)
the member believes he cannot be impartial or objective.
(8) Each PRRC member must comply with the
confidentiality requirements of §
901.161
of the Act (relating to Privilege for Certain Information). The sponsoring
organization may annually require its PRRC members to sign a statement
acknowledging their appointments and the responsibilities and obligations of
their appointments.
(9) A PRRC
decision to accept a report must be made by not fewer than three members who
satisfy the above criteria.
Notes
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