872 IAC 1-6-9 Enrollment in an approved peer review program

Sec. 9. (a) This section applies to renewal of firm permits that expire after June 29, 2006. (b) Enrollment in an approved peer review program is a condition for renewal of a permit for firms that issue attest and compilation reports. The board requires licensees that issue attest or compilation reports to be enrolled in an approved peer review program. (c) A firm is not required to enroll in an approved peer review program if its only level of service is performing preparation of financial statements, with or without disclaimer reports, under the Statements on Standards for Accounting and Review Services. However, if the firm elects to enroll in an approved peer review program, it is required to have a peer review that includes preparation of financial statements within the scope of the review. (d) A firm enrolled in an approved peer review program shall schedule, undergo, and complete its initial peer review in compliance with the sponsoring organization's peer review standards and related guidance. A firm's initial peer review is due eighteen (18) months after the date it enrolled, or should have enrolled, in an approved peer review program. The due date is a date by which a review has taken place and all materials have been submitted to the administering entity. (e) A firm enrolled in an approved peer review program shall schedule, undergo, and complete its subsequent peer reviews in compliance with the sponsoring organization's peer review standards and related guidance. Unless an extension has been granted as provided in this rule, subsequent peer reviews are due within three (3) years and six (6) months after the peer review year end of the previous peer review. (f) For good cause shown, the board may grant or renew permits for a reasonable period pending completion of the firm's peer review. (g) For firms required to be registered with and subject to inspection by the Public Company Accounting Oversight Board (PCAOB), the board recognizes the PCAOB's inspection process for reviewing practices subject to its authority, which are not included in the scope of peer review programs. Firms subject to inspection by the PCAOB are also required to meet the peer review requirements under an approved peer review program that covers the portion of the firm's practice not subject to the PCAOB's permanent inspection. (h) If a firm is sold, dissolved, or merged with another firm, determining successor or predecessor firms, the peer review year end or ends, and the peer review due date or dates will be made under the sponsoring organization's guidance. (i) Failure of a firm to complete a peer review may result in the denial of renewing the firm's permit under IC 25-2.1-5. (j) An application for renewal of a permit under IC 25-2.1-5 must certify: (1) under the penalty of perjury, acceptance of the peer review report issued to the firm by the administering entity; (2) that the firm is not required to have a peer review to renew its permit because it has not performed any attest or compilation engagements: (A) since the last expiration of the firm permit; or (B) if the firm permit was initially issued after the last renewal, since the initial issuance of the firm permit; or (3) that the firm is not required to have a peer review to renew its firm permit because it: (A) did not perform any attest or compilation engagement within the first eighteen (18) months of the three (3) year period preceding the firm's application for renewal of its permit; or (B) obtained the initial issuance of its firm permit within the last eighteen (18) months of the three (3) year period preceding the firm's application for renewal of its permit. (k) A firm that was not required to obtain a peer review under subsection (c) shall: (1) at the time of renewal, notify the board of the date the first attest or compilation report was issued; and (2) comply with subsections (b) and (d). (l) To renew an expired firm permit, a firm shall undergo a peer review in compliance with this rule. An exemption under subsection (b) shall be calculated as if the firm permit had been renewed before its expiration. (m) Each firm is responsible for the cost of the peer reviews under this rule.