Approved Peer Review Sponsoring Organizations, Programs and Peer Review

Approved Peer Review Sponsoring Organizations, Programs and Peer Review Standards (a) The Board shall approve peer review sponsoring organizations, program(s) and standards. (b) The Board finds that because the American Institute of Certified Public Accountants (AICPA) has decades of experience as a sponsoring organization and has developed universally respected peer review standards, the Board recognizes the AICPA as an approved sponsoring organization, along with its peer review program and standards; this approval also applies to any Administering Entity of the AICPA Peer Review Program. These organizations are not required to submit an application for approval to the Board. As a condition of this approval, a sponsoring organization is required to: (1) administer peer reviews for nonmember licensees whose firms’ principal places of business are located in the state(s) where it administers peer reviews, provided that such nonmembers comply with the applicable peer review standards, and (2) provide advance notice to the Board and an opportunity for discussion if any Administering Entity is to be discontinued. (c) The Board may terminate its approval of a sponsoring organization for cause following notice and opportunity for hearing. For purposes of this paragraph, “cause” includes but is not limited to a substantive change in the Peer Review Program that adversely affects licensees or the public firms or impairs the Board’s ability to protect the public in this State or failure to maintain an ongoing compliance with the requirements of this chapter. (d) The Board may approve other peer review sponsoring organizations and programs. For an organization not specifically identified in these Rules as Board-approved, to receive Board approval for its peer review program and standards, the organization must submit evidence to the satisfaction of the Board. The evidence shall include but is not limited to the standards, procedures, guidelines, oversight process, training materials and related documents used to administer, perform, and accept peer reviews. The Board has the authority to request any other documents/information from an organization about its peer review program in determining whether to grant approval.