22 Tex. Admin. Code § 527.12 - Engagement Reviews and System Reviews

(a) In order to balance the public's risk with the public's protection, the board is requiring peer review of firms providing financial reporting services. In implementing the peer review program, the board will consider the level of risk to the public of various attest services and require different levels of peer review based on those risks. Those firms that provide limited financial statement services can elect to perform non-attest preparation engagements under SSARS which do not require peer review.

(b) A firm whose only level of financial reporting is preparation engagements under SSARS must request on its annual license renewal an exemption from peer review.

(c) A firm that performs the following is subject to Engagement Peer Review.

(1) Compilations with disclosures or omitting substantially all disclosures and/or reviews of financial statements performed in accordance with SSARS. If the firm performs both an attest service and a preparation engagement(s), then the preparation engagement(s) is also subject to review and could be selected for peer review.

(2) Reviews and/or agreed-upon procedures engagements performed in accordance with SSAEs, or alternate wording engagements performed under the SSAEs, other than examinations.

(d) A firm that performs the following is subject to a System Peer Review.

(1) Engagements performed in accordance with SAS;

(2) Engagements performed in accordance with Government Auditing Standards (GAS);

(3) Examination engagements performed in accordance with SSAEs;

(4) Audits of non-SEC issuers performed in accordance with PCAOB standards; or

(5) Attestation of non-SEC issuers performed in accordance with PCAOB standards.

Notes

22 Tex. Admin. Code § 527.12

Adopted by Texas Register, Volume 44, Number 40, October 4, 2019, TexReg 5786, eff. 10/10/2019