PART 3. TEXAS BOARD OF CHIROPRACTIC EXAMINERS
CHAPTER 80. PROFESSIONAL CONDUCT
The Texas Board of Chiropractic Examiners (Board) adopts an amendment to §80.5, relating to maintenance of chiropractic records, without changes to the proposed text as published in the January 2, 2009, issue of the Texas Register (34 TexReg 23).
The amendment is adopted to provide clearer standards for the contents of chiropractic records. The Board's Enforcement Committee has frequently reviewed patient and billing records from licensees that include only minimal or sparse information regarding their examination and treatment of a patient.
In drafting the amendment to this rule, the Board reviewed similar rules that have been developed by the chiropractic licensing boards of California, Colorado, Florida, Kansas, Missouri, and New York and other guidelines for documenting patient care.
The Board received one comment in support of the proposed amendment from Parker College of Chiropractic.
The amendment is adopted under the Texas Occupations Code, §201.152, relating to rules, which authorizes the Board to adopt rules necessary to regulate the practice of chiropractic.
No other statutes, articles, or codes are affected by this adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 25, 2009.
TRD-200901193
Glenn Parker
Executive Director
Texas Board of Chiropractic Examiners
Effective date: April 14, 2009
Proposal publication date: January 2, 2009
For further information, please call: (512) 305-6901
CHAPTER 220. NURSE LICENSURE COMPACT
The Texas Board of Nursing (Board) adopts amendments to §220.2 and §220.3, concerning the Nurse Licensure Compact (Compact) without changes to the proposed text as published in the February 20, 2009, issue of the Texas Register (34 TexReg 1174) and will not be republished.
The adopted amendments to §220.2 and §220.3 implement the Texas Occupations Code Chapter 304, which regulates the Compact. The statutory purpose of the Compact is to: (i) facilitate the states' responsibilities to protect the public's health and safety; (ii) ensure and encourage the cooperation of party states in the areas of nurse licensing and regulation; (iii) facilitate the exchange of information between party states in the areas of nurse regulation, investigation, and adverse action; (iv) promote compliance with the laws governing the practice of nursing in each jurisdiction; and (iv) invest all party states with the authority to hold a nurse accountable for meeting all state practice laws in the state in which the patient is located at the time care is provided through the mutual recognition of party state licenses. Further, the Texas Occupations Code §304.002 designates the Executive Director of the Board as the Compact administrator for the state. Articles 6 and 8 of the Texas Occupations Code §304.001 provides: (i) Compact administrators with the authority to develop uniform rules to facilitate and coordinate implementation of the Compact and (ii) party state nursing boards with the authority to adopt those uniform rules. The adopted amendments to §220.2 and §220.3 facilitate the coordination of the Compact by implementing policies that have been approved by the member states of the Compact. The adoption of these uniform policies will result in more consistent implementation of the Compact among the party states. Specifically, the adopted amendments to §220.2 are necessary for consistency and clarity among party states regarding the following issues: (i) documentation that may be requested in order to prove a nurse's primary state of residence; (ii) the option of a nurse on a visa to declare his or her country of origin or the party state as his or her primary state of residence; (iii) issuing a single state license to a nurse who declares a foreign country his or her primary state of residence; and (iv) designating when a license issued by one party state authorizes practice in all other party states and when a license issued by one party state does not authorize practice in other party states. It is important that these policies and procedures are adopted by the party states so that the treatment of Compact license applications are consistent among the party states. Further, these adopted amendments are anticipated to result in a more efficient and streamlined Compact application process in Texas. The adopted amendments to §220.3 are necessary to allow a nurse whose license has been revoked, suspended, or surrendered or whose application has been denied in the nurse's former state of primary residence to be eligible for issuance of a single state license in the nurse's new primary state of residence if the new primary state of residence deems it appropriate. Under adopted §220.3, however, the new primary state action will not provide a multistate privilege. This adopted amendment is significant because a nurse may relocate to a new Compact state and be unable to resolve the disciplinary past with the former state of residence. Adopted §220.3 is anticipated to provide additional flexibility and opportunity to nurses under restricted licenses so that they may practice in a new state of primary residence, if that state of residence deems it appropriate, while resolving disciplinary actions with former states of residence.
The following is a section-by-section overview of the adopted amendments.
§220.2. Issuance of a License by a Compact Party State. Adopted §220.2(b) provides that the following evidence may be requested in order to prove a nurse's primary state of residence: (i) Military Form Number 2058 - state of legal residence certificate; and (ii) W2 from US government of any bureau, division, or agency thereof indicating the declared state of residence. Adopted §220.2(c) provides that a nurse on a visa from another country applying for licensure in a party state may declare either the country of origin or the party state as the primary state of residence. Further, adopted §220.2(c) provides that, if the foreign country is declared the primary state of residence, a single state license will be issued by the party state. Adopted §220.2(d) provides that a license issued by a party state is valid for practice in all other party states unless clearly designated as valid only in the state which issued the license. Adopted §220.2(e) states that when a party state issues a license authorizing practice only in that state and not authorizing practice in other party states (i.e., a single state license), the license shall be clearly marked with words indicating that it is valid only in the state of issuance. The remaining adopted amendments to §220.2 re-designate the subsections accordingly. Adopted §220.3(b) provides that an individual who had a license which was surrendered, revoked, suspended, or an application denied for cause in a prior state of primary residence may be issued a single state license in a new primary state of residence until such time as the individual would be eligible for an unrestricted license by the prior state(s) of adverse action. Further, adopted §220.3(b) provides that, once eligible for licensure in the prior state(s), a multistate license may be issued. The remaining adopted amendments to §220.3 re-designate the subsections accordingly.
The Board did not receive any comments on the proposed amendments.
The amendments are adopted under the Texas Occupations Code Chapter 304, including Articles 6 and 8 of the Texas Occupations Code §304.001, which provides Compact administrators with the authority to develop uniform rules to facilitate and coordinate implementation of the Compact and party state nurse licensing boards with the authority to adopt uniform rules.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 25, 2009.
TRD-200901190
James W. Johnston
General Counsel
Texas Board of Nursing
Effective date: April 14, 2009
Proposal publication date: February 20, 2009
For further information, please call: (512) 305-6811
CHAPTER 501. RULES OF PROFESSIONAL CONDUCT
SUBCHAPTER C. RESPONSIBILITIES TO CLIENTS
The Texas State Board of Public Accountancy adopts an amendment to §501.71, concerning Receipt of Commissions and Other Compensation, without changes to the proposed text as published in the January 23, 2009, issue of the Texas Register (34 TexReg 404) and will not be republished.
The section establishes a CPA's required disclosure of commissions and other compensations.
The amendment will add language that permits CPAs to provide an estimate of the amount of the CPAs commission for services or products recommended or sold by him when the exact amount is unknown.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 2009.
TRD-200901199
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: April 15, 2009
Proposal publication date: January 23, 2009
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy adopts an amendment to §518.3, concerning Violation of a Cease and Desist Order, without changes to the proposed text as published in the January 23, 2009, issue of the Texas Register (34 TexReg 405) and will not be republished.
The section establishes the board's procedures when an agreed cease and desist order has been violated.
The amendment will provide language in our rules to seek an injunction in court to expedite our efforts to stop the unlawful activity by those who violate cease and desist orders.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 2009.
TRD-200901200
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: April 15, 2009
Proposal publication date: January 23, 2009
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy adopts an amendment to §527.2, concerning Definitions, with changes to the proposed text as published in the November 28, 2008, issue of the Texas Register (33 TexReg 9649). The change from the proposal can be found throughout the rule.
The section defines terms which are used throughout Chapter 527.
The amendment incorporates recent changes to the AICPA/NASBA Model Rules of the Uniform Accountancy Act.
A comment letter was received regarding the adoption of the amendment. Representatives of the American Institute of Certified Public Accountants and the Texas Society of Certified Public Accountants provided a letter commenting on the proposed revisions and provided suggested changes to the rule revisions as published. The proposed changes to the rule revisions as published are intended to add clarification to the administration of the Peer Review Program.
The Board is in agreement with the proposed changes as suggested in the letter of comment and adopts the rule revisions with the suggested changes included.
The amendment is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by the adoption.
§527.2.Definitions.
The following words and terms used in this chapter shall have the following meanings, unless the context clearly indicates otherwise.
(1) "Review" or "review program" means the review conducted under the peer review program.
(2) "Review year" means the one-year (twelve-month) period covered by the review. Engagements selected for review normally would have periods ending during the year under review.
(3) "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.
(4) "Special reports" include but are not limited to reports issued under professional standards in connection with the following:
(A) specified elements, accounts, or items of a financial statement;
(B) compliance with aspects of contractual agreements or regulatory requirements related to audited financial statements;
(C) financial presentations to comply with contractual agreements or regulatory provisions;
(D) financial information presented in prescribed forms or schedules that require a prescribed form of auditor's reports; or
(E) internal audits by a firm for a client or a governmental entity.
(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 deficiency(ies), or fail. The peer review rating is clearly indicated in the final paragraph of the review report.
(7) "Acceptance" of an AICPA or TSCPA peer review is the date that the sponsoring organization's peer review report committee (PRRC), referred to in §527.9(a)(1) of this title (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).
(8) "Completion date" of an AICPA or TSCPA peer review is the date that the sponsoring organization's PRRC, referred to in §527.9(a)(1) of this title, 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.
(9) "AICPA Public File" is the file for firms that are members of the AICPA's Employee Benefit Plan Audit Quality Center, Governmental Audit Quality Center or Private Companies Practice Section who post their review information to this public file on the 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.
(10) "Peer Review State Board Access (PRSBA)" is the state board limited access web site 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).
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 2009.
TRD-200901201
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: April 15, 2009
Proposal publication date: November 28, 2008
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy adopts an amendment to §527.3, concerning Standards for Peer Reviews and Sponsoring Organizations, with changes to the proposed text as published in the November 28, 2008, issue of the Texas Register (33 TexReg 9650). The changes from the proposal are in subsection (b).
The section clarifies the minimum standards for reviews and lists qualified sponsoring organizations.
The amendment incorporates recent changes to the AICPA/NASBA Model Rules of the Uniform Accountancy Act.
A comment letter was received regarding the adoption of the amendment. Representatives of the American Institute of Certified Public Accountants and the Texas Society of Certified Public Accountants provided a letter commenting on the proposed revisions and provided suggested changes to the rule revisions as published. The proposed changes to the rule revisions as published are intended to add clarification to the administration of the Peer Review Program.
The Board is in agreement with the proposed changes as suggested in the letter of comment and adopts the rule revisions with the suggested changes included.
The amendment is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by the adoption.
§527.3.Standards for Peer Reviews and Sponsoring Organizations.
(a) The board adopts "Standards for Performing and Reporting on Peer Reviews" promulgated by the AICPA and for public company audit firms, the firm inspection standards required under the Sarbanes-Oxley Act of 2002 (SOX), as its minimum standards for review of firms.
(b) Qualified sponsoring organizations shall be the AICPA Peer Review Program, the TSCPAs Peer Review Program and state CPA societies fully involved in the administration of the AICPA Peer Review Program, NCCPAP, the PCAOB, and such other entities which are approved by the board.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 2009.
TRD-200901202
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: April 15, 2009
Proposal publication date: November 28, 2008
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy adopts an amendment to §527.4, concerning Enrollment and Participation, with changes to the proposed text as published in the November 28, 2008, issue of the Texas Register (33 TexReg 9651). The change from the proposal is found in subsection (b) where "which" has been replaced with "that", in subsection (f) where "whatever" has been changed to "any" and in subsection (k), the acronym "PCOAB" has been changed to "PCAOB".
The section establishes the requirement for firms that perform any attest service or accounting and/or audit engagement to participate in a peer review program.
The amendment incorporates recent changes to the AICPA/NASBA Model Rules of the Uniform Accountancy Act.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by the adoption.
§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 service or any accounting and/or auditing engagements, including audits, reviews, compilations, forecasts, projections, or special reports as defined in §901.002 General Definitions of the Public Accountancy Act and §501.52(4), (11) and (22) of this title (relating to Definitions). A firm which issues only compilations where no report is required under the Statements on Standards for Accounting and Review Services is required to participate in the program.
(b) A firm that does not perform 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 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 12 months 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 12 months 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, 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 or a committee of the board. 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 succeeding firm. The succeeding 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 20 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.
(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 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) of these regulations 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 and Chapter 517 of these regulations.
(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 SOX 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.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 2009.
TRD-200901203
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: April 15, 2009
Proposal publication date: November 28, 2008
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy adopts an amendment to §527.5, concerning Successive Deficient Reviews, with changes to the proposed text published in the November 28, 2008, issue of the Texas Register (33 TexReg 9652). The change from the proposal can be found throughout the rule.
The section establishes the requirements for firms who have successive deficient reviews to have an accelerated review.
The amendment incorporates recent changes to the AICPA/NASBA Model Rules of the Uniform Accountancy Act.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by the adoption.
§527.5.Successive Deficient Reviews.
(a) A firm, including a succeeding firm, which receives two consecutive reviews with a rating of pass with deficiencies and/or fail on a system or engagement review may be required to have an accelerated review by the Peer Review Committee.
(b) If that accelerated review results in a rating of pass with deficiencies or fail:
(1)the firm may complete attest engagements for which field work has already begun only if:
(A) prior to issuance of any report, the engagement is reviewed and approved by a third party reviewer acceptable to the chairman of the appropriate Technical Standards Review Committee or the Peer Review Committee, and
(B) the engagement is completed within thirty days of the acceptance of the peer review report, and LOR by the sponsoring organization; and
(2) the firm shall not perform any other attest service including any accounting and/or auditing engagements, including, audits, reviews, compilations (as well as compilations where no report is required), forecasts, projections, or other special reports for a period of three years or until given permission by the board to resume this practice.
(c) A firm may petition the board for a waiver from the provisions of this rule.
(d) The board at its discretion may require a firm which has received a rating of pass with deficiencies or fail to have an accelerated peer review or subject it to any other disciplinary or corrective action under the Act.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 2009.
TRD-200901204
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: April 15, 2009
Proposal publication date: November 28, 2008
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy adopts an amendment to §527.6, concerning Reporting to the Board, with changes to the proposed text published in the November 28, 2008, issue of the Texas Register (33 TexReg 9653). The change from the proposal can be found throughout the rule.
The section establishes the requirement of each firm to submit documentation of their review report to the Board.
The amendment incorporates recent changes to the AICPA/NASBA Model Rules of the Uniform Accountancy Act.
A letter of comment was received regarding the adoption of the amendment. Representatives of the American Institute of Certified Public Accountants and the Texas Society of Certified Public Accountants provided a letter commenting on the proposed revisions and provided suggested changes to the rule revisions as published. The proposed changes to the rule revisions as published are intended to add clarification to the administration of the Peer Review Program, allows firms 45 days to respond to the Board with the results of reviews, if their reviews are being administered by the National Peer Review Committee (NPRC), recognizes firms with reviews being administered by the NPRC and that are not members of an AICPA audit quality center, must manually report to the Board and addresses the fact that firms outside of Texas must manually report to the Board.
The Board is in agreement with the proposed changes as suggested in the letter of comment and adopts the rule revisions with the suggested changes included.
The amendment is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by the adoption.
§527.6.Reporting to the Board.
(a) A firm must submit to the board:
(1) a copy of the peer review report and the FLOA from the sponsoring organization, if such report has a rating of pass;
(2) a copy of the peer review report, the firm's LOR, the CAL, and FLOA if the report has a rating of pass with deficiencies or fail; or
(3) a copy of any final report resulting from any inspection by the PCAOB firm inspection program together with documentation of any significant deficiencies and findings and the firm's response.
(b) Any report or document submitted to the board under this section is confidential pursuant to the Act.
(c) Any report or document (collectively referred to as "documents") required to be submitted under subsection (a) of this section shall be filed with the board as provided below:
(1) For peer reviews scheduled after December 1, 2009, peer review documents will be made available by the TSCPA for firms enrolled in the AICPA and TSCPA Peer Review Programs and administered by the TSCPA. Peer review documents will be made available by the TSCPA by posting such documents within thirty days of issuing its notice of acceptance to such firms on the PRSBA web site. For reviews scheduled prior to December 1, 2009, the reviewed firm must, within ten days of receipt of the notice of completion from the TSCPA, complete the board's Peer Review Compliance Reporting form and submit it to the board along with the required documents.
(2) Firms otherwise enrolled in the AICPA peer review program (including those whose peer reviews are administered by the NPRC) must, within ten days of receipt of the notice of completion from the sponsoring organization, complete the board's Peer Review Compliance Reporting form and submit it to the board along with the required documents. However, this requirement may be met by allowing the firm's peer review documents to be posted on the PRSBA web site, with access granted to the board within thirty days of issuing its notice of acceptance to such firms on the PRSBA web site.
(3) Firms enrolled in the NCCPAP peer review program must, within ten days of receipt of the notice of completion from NCCPAP, complete the board's Peer Review Compliance Reporting form and submit it to the board along with the required documents.
(4) Firms enrolled in the PCAOB inspection program must, within ten days of receipt of the notice of completion from the PCAOB, complete the board's Peer Review Compliance Reporting form and submit it to the board along with the required documents.
(d) The information required under subsection (c) of this section must be filed with the board either by mail or electronically such as by fax, email, or PRSBA web site.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 2009.
TRD-200901205
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: April 15, 2009
Proposal publication date: November 28, 2008
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy adopts an amendment to §527.7, concerning Peer Review Oversight Board, with changes to the proposed text published in the November 28, 2008, issue of the Texas Register (33 TexReg 9654). The change from the proposal can be found throughout the rule.
The section establishes the purposes of the Peer Review Oversight Board.
The amendment incorporates recent changes to the AICPA/NASBA Model Rules of the Uniform Accountancy Act.
A letter of comment was received regarding the adoption of the amendment. Representatives of the American Institute of Certificate Public Accountants and the Texas Society of Certified Public Accountants provided a letter commenting on the proposed revisions and provided suggested changes to the rule revisions as published. The proposed changes to the rule revisions as published are intended to add clarification to the administration of the Peer Review Program.
The Board is in agreement with the proposed changes as suggested in the letter of comment and adopts the rule revisions with the suggested changes included.
The amendment is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by the adoption.
§527.7.Peer Review Oversight Board.
(a) The board shall retain the Peer Review Oversight Board (PROB) for the purpose of:
(1) monitoring sponsoring organizations to provide reasonable assurance that peer reviews are being conducted and reported in accordance with Standards for Performing and Reporting on Peer Reviews (the Standards) promulgated by the AICPA Peer Review Board;
(2) reviewing the policies and procedures of sponsoring organization applicants as to their conformity with the peer review standards; and
(3) reporting to the board on the conclusions and recommendations reached as a result of performing the functions in paragraphs (1) and (2) of this subsection.
(b) Information concerning a specific firm or reviewer obtained by the PROB during oversight activities shall be confidential, and the firm's or reviewer's identity shall not be reported to the board. Reports submitted to the board will not contain information concerning specific firms or reviewers. Members of the PROB will be required to execute a confidentiality statement for the sponsoring organization which they oversee.
(c) Effective September 1, 2009, the PROB shall consist of three members who are active licensed Texas CPAs. No member of the PROB shall be current members of the board or one of its committees, the TSCPAs Peer Review or Professional Conduct Committee, or the AICPA Professional Ethics Executive Committee (including subcommittees). The members should have extensive experience in accounting and auditing and currently be in the practice of public accountancy at the partner (or equivalent) level, and shall be members of the TSCPA or the AICPA. The member's firm must have received a report with a rating of pass or an unmodified opinion from its last peer review. Compensation of PROB members shall be set by the board.
(d) The PROB shall make an annual recommendation to the board as to the qualifications of an approved sponsoring organization to continue as an approved sponsoring organization on the basis of the results of the following procedures:
(1) Where the sponsoring organization is the AICPA/NPRC, state CPA societies other than Texas, fully involved in the administering AICPA Peer Review Program, or the PCAOB, PROB shall review the published reports of those entities or successors, to determine that there is an acceptable level of oversight;
(2) Where the sponsoring organization is other than those listed in subsection (d)(1) of this section, PROB shall perform the following functions:
(A) At least one member of the PROB shall attend all meetings of each sponsoring organization's PRRC. Certain PRRC meetings may be conducted via telephone. In those instances, the PROB may join the conference call.
(B) During such visits, the PROB shall:
(i) meet with the organization's peer review committee during the committee's consideration of peer review documents;
(ii) evaluate the organization's procedures for administering the peer review program;
(iii) examine, on the basis of a random selection, a number of reviews performed by the organization to include, at a minimum, a review of the report on the peer review, the firm's response to the matters discussed, the sponsoring organization's letter of acceptance outlining any additional corrective or monitoring procedures, and the required technical documentation maintained by the sponsoring organization on the selected reviews; and
(iv) expand the examination of peer review documents if significant deficiencies, problems, or inconsistencies are encountered during the analysis of the materials.
(e) In the evaluation of policies and procedures of sponsoring organization applicants, the PROB shall:
(1) examine the policies as drafted by the applicant to determine that they will provide reasonable assurance of conforming with the standards for peer reviews;
(2) evaluate the procedures proposed by the applicant to determine that:
(A) assigned reviewers are appropriately qualified to perform the review for the specific firm;
(B) reviewers are provided with appropriate materials;
(C) applicant has provided for consulting with the reviewers on problems arising during the review and that specified occurrences requiring consultation are outlined;
(D) applicant has provided for the assessment of the results of the review; and
(E) applicant has provided for an independent report acceptance body that considers and accepts the reports of the review and requires corrective actions by firms with significant deficiencies;
(3) make recommendations to the board as to approval of the applicant as a sponsoring organization.
(f) Annually the PROB shall provide the board's Peer Review Committee with a report on the continued reliance of sponsoring organizations' peer reviews. The PROB report shall provide reasonable assurance that peer reviews are being conducted and reported on consistently and in accordance with the Standards for Performing and Reporting on Peer Reviews (the Standards) promulgated by the AICPA Peer Review Board. A summary of oversight visits shall be included with the annual report.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 2009.
TRD-200901206
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: April 15, 2009
Proposal publication date: November 28, 2008
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy adopts an amendment to §527.8, concerning Retention of Documents, with changes to the proposed text published in the November 28, 2008, issue of the Texas Register (33 TexReg 9656). The changes from the proposal can be found in subsection (b), deleting the phrase "Peer Review Oversight Board" and replacing it with its acronym and deleting "acceptance" and replacing it with "completion".
The section establishes the retention period for the reviewer to maintain documentation.
The amendment incorporates recent changes to the AICPA/NASBA Model Rules of the Uniform Accountancy Act.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by the adoption.
§527.8.Retention of Documents.
(a) Each reviewer shall maintain all documentation necessary to establish that each review conformed to the review standards of the relevant review program, including the review working papers, copies of the review report, and any correspondence indicating the firm's concurrence, non-concurrence, and any proposed remedial actions and any related implementation.
(b) The documents described in subsection (a) of this section shall be retained by the reviewer for a period of time corresponding to the retention period of the sponsoring organization, and upon request of the PROB, shall be made available. In no event shall the retention period be less than 120 days from the date of completion of the review by the sponsoring organization.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 2009.
TRD-200901207
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: April 15, 2009
Proposal publication date: November 28, 2008
For further information, please call: (512) 305-7842
The Texas State Board of Public Accountancy adopts an amendment to §527.11, concerning Responsibilities of Peer Review Report Committee, without changes to the proposed text as published in the November 28, 2008, issue of the Texas Register (33 TexReg 9657) and will not be republished.
The section establishes the responsibilities of the Peer Review Report Committee.
The amendment incorporates recent changes to the AICPA/NASBA Model Rules of the Uniform Accountancy Act.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the Public Accountancy Act (Act), Texas Occupations Code, §901.151 which provides the agency with the authority to amend, adopt and repeal rules deemed necessary or advisable to effectuate the Act.
No other article, statute or code is affected by the adoption.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on March 26, 2009.
TRD-200901208
J. Randel (Jerry) Hill
General Counsel
Texas State Board of Public Accountancy
Effective date: April 15, 2009
Proposal publication date: November 28, 2008
For further information, please call: (512) 305-7842