22 Tex. Admin. Code § 527.2 - Definitions
The following words and terms used in this chapter shall have the following meanings, unless the context clearly indicates otherwise.
(1) "Engagement Review" means a peer review
evaluating engagements performed and reported on in conformity with applicable
professional standards in all material respects and unless agreed to otherwise
is performed off-site from the reviewed firm's office and does not provide a
basis for expressing any assurance regarding the firm's system of quality
control for its accounting practice.
(2) "Systems Review" means a peer review
designed to provide a peer reviewer with a reasonable basis for expressing an
opinion on whether, during the year under review:
(A) the reviewed firm's system of quality
control for its accounting and auditing practice has been designed in
accordance with quality control standards; and
(B) the reviewed firm's quality control
policies and procedures were being complied with to provide the firm with
reasonable assurance of performing and reporting in conformity with applicable
professional standards in all material respects.
(3) "Review Year" means the one-year
(12-month) period covered by the peer review. Financial statement engagements
selected for review normally would have periods ending during the year under
review. Engagements related to financial forecasts or projections, or agreed
upon procedures engagements, with report dates during the year under review
would also be subject to selection for review.
(4) "Sponsoring organization" means an entity
that meets the standards specified by the board for administering the review.
The board shall periodically publish a list of sponsoring organizations, which
have been approved by the board.
(5) "Firm inspection program" means the
process of firm inspection administered by the PCAOB.
(6) "Rating" of a peer review refers to the
type of report issued. The three types of reports are pass, pass with
deficiencies, or fail. The peer review rating is clearly indicated in the peer
review report. A peer review report with a rating of pass with deficiencies or
fail is considered a deficient review.
(7) "Assigned review date" is the reporting
due date to the board of an accepted peer review report.
(8) "Acceptance date" of a peer review is the
date that the sponsoring organization's peer review report committee (PRRC),
referred to in §
527.9(a)(1)
of this chapter (relating to Procedures for a Sponsoring Organization), is
presented the peer review report on a review with the rating of pass and the
PRRC approves the review. The acceptance date and in this case the completion
date of the peer review are the same date and is noted in a letter from the
administering entity to the reviewed firm. The PRRC will be presented with the
peer review report and the firm's letter of response on reviews with a rating
of pass with deficiencies or fail. Ordinarily, the PRRC will require the
reviewed firm to take corrective action(s) and those actions will be
communicated in a letter to the firm from the administering entity. In this
circumstance, the "acceptance date" is defined as the date that the reviewed
firm signs the letter from the administering entity agreeing to perform the
required corrective action(s).
(9)
"Completion date" of a peer review is the date that the sponsoring
organization's PRRC, referred to in §
527.9(a)(1)
of this chapter, is presented the corrective action and the committee decides
that the reviewed firm has performed the agreed-to corrective action(s) to the
committee's satisfaction and the committee requires no additional corrective
action(s) by the firm. The date is noted in a final letter from the
administering entity to the reviewed firm.
(10) "AICPA Public File" is the file for
firms that are members of AICPA's Employee Benefit Plan Audit Quality Center,
Governmental Audit Quality Center, Private Companies Practice Section, or other
firms that voluntarily post their review information to this public file on
AICPA's web site as a membership requirement. Information in the public file
includes the firm's most recently accepted peer review report and the firm's
response thereto, if any.
(11)
"Facilitated State Board Access (FSBA)" is a secure website accessible only to
the state board that provides the most recently accepted peer review report,
the firm's letter of response (LOR), the corrective action letter (CAL), and
the final letter of acceptance (FLOA).
Notes
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