22 TAC §527.4
The Texas State Board of Public Accountancy (Board) proposes
an amendment to §527.4 concerning Quality Review Program.
The amendment to §527.4 will clarify that the Board requires a quality
review every three years or sooner if the quality review organization so requires,
adopts "system reviews and engagement reviews" as promulgated by the American
Institute of Certified Public Accountants (AICPA) and does not recognize "report
reviews" as promulgated by the AICPA.
William Treacy, Executive Director of the Board, has determined that for
the first five-year period the proposed amendment will be in effect:
A. The additional estimated cost to the state expected as a result of enforcing
or administering the rule will be zero because the amendment does not impose
an additional burden to anyone.
B. The estimated reductions in costs to the state and to local governments
as a result of enforcing or administering the rule will be zero because the
amendment does not impose an additional burden to anyone.
C. The estimated loss or increase in revenue to the state as a result of
enforcing or administering the rule will be zero because the amendment does
not impose an additional burden to anyone.
Mr. Treacy has determined that for the first five-year period the amendment
is in effect the public benefits expected as a result of adoption of the proposed
amendment will be that the rule will clarify that the Board requires a quality
review every three years or sooner, that "system reviews and engagements reviews"
will be adopted but "report reviews" will not be adopted.
The probable economic cost to persons required to comply with the rule
will be zero because the amendment does not impose an additional burden to
anyone.
Mr. Treacy has determined that a Local Employment Impact Statement is not
required because the amendment does not impose an additional burden to anyone.
The Board requests comments on the substance and effect of the proposed
amendment from any interested person. Comments must be received at the Board
no later than noon on August 25, 2000. Comments should be addressed to Amanda
G. Birrell, General Counsel, Texas State Board of Public Accountancy, 333
Guadalupe, Tower III, Suite 900, Austin, Texas, 78701 or faxed to her attention
at (512) 305-7854.
Mr. Treacy has determined that the proposed rule will not have an adverse
economic effect on small businesses because the amendment requires nothing
of anyone or of any small businesses. The Board specifically invites comments
from the public on the issues of whether or not the proposed rule will have
an adverse economic effect on small business; if the rule is believed to have
such an effect, then how may the Board legally and feasibly reduce that effect
considering the purpose of the statute under which the rule is to be adopted;
and if the rule is believed to have such an effect, how the cost of compliance
for a small business compares with the cost of compliance for the largest
business affected by the rule under any of the following standards: (a) cost
per employee; (b) cost for each hour of labor; or (c) cost for each $100 of
sales. See Texas Government Code, §2006.002(c).
The amendment is adopted under the Public Accountancy Act, Texas
Occupations Code, §901.151 (Vernon 1999) which authorizes the Board to
adopt rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by this proposed amendment.
§527.4.Quality Review Program
The following operations of the program shall be conducted by the board.
This section shall not require any firm to become a member of any sponsoring
organization.
(1)
(No change.)
(2)
Operation.
(A)
Each firm registered with the board shall enroll in the
program of an approved sponsoring organization in accordance with paragraph
(6) of this section within one year 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 date within 30 days of its assignment.
In addition, the firm shall
schedule and begin an additional review within three years of the previous
review's due date, or earlier as may be required by the sponsoring organization.
(B)
(No change.)
(3)
Standards
[
Minimum standards
]. The
board [
hereby
] adopts
system reviews and engagement reviews
described in
"Standards for Performing and Reporting on Peer Reviews"
promulgated by the American Institute of Certified Public Accountants, Inc.,
as its minimum standards for review of firms.
The board does not recognize
"report reviews" performed under the AICPA Standards.
(4)-(10)
(No change.)
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State, on July 21, 2000.
TRD-200005021
William Treacy
Executive Director
Texas State Board of Public Accountancy
Earliest possible date of adoption: September 3, 2000
For further information, please call: (512) 305-7848