22 Tex. Admin. Code § 527.4 - Enrollment and Participation
(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.
Notes
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