§ 7410 — Mandatory peer review

§ 7410. Mandatory peer review. 1. The department shall require as a\ncondition to renewal of registrations under section seventy-four hundred\neight of this article, that unless otherwise exempted by the department,\napplicants for firm registrations, undergo, no more frequently than once\nevery three years, except pursuant to a disciplinary action brought\nunder section seventy-four hundred eight of this article, peer reviews\nof the firm's attest services conducted in such manner as the\ncommissioner shall specify in regulations, and such review shall include\na verification that individuals in the firm who are responsible for\nsupervising attest services sign or authorize someone to sign the\naccountant's report on the financial statements on behalf of the firm\nmeet the competency requirements set out in the professional standards\nfor such services, provided that any such regulations:\n a. shall include reasonable provisions for compliance by an applicant\nfor firm registration showing that it has, within the preceding three\nyears, undergone a peer review in this state or a peer review in another\nstate that is a satisfactory equivalent to peer review required pursuant\nto this section;\n b. shall require, with respect to any organization administering peer\nreview programs contemplated by paragraph a of this subdivision, that it\nbe subject to evaluations by the department or its designee, to\nperiodically assess the effectiveness of the peer review program under\nits charge;\n c. shall require the peer review to be conducted by reviewers\nacceptable to the department in accordance with the commissioner's\nregulations; and\n d. may require with respect to peer reviews contemplated by paragraph\na of this subdivision that firms undergoing peer reviews and\norganizations administering peer review programs timely remit such peer\nreview reports to the state board for public accountancy and such\nreports shall be maintained by the board in a manner consistent with\nsubdivision two of this section.\n 2. Notwithstanding any provision of law to the contrary, the reports\nsubmitted in accordance with subdivision one of this section shall be\nconfidential and shall not constitute a public record and shall not be\nsubject to disclosure under articles six and six-A of the public\nofficers law. However, when any such report is admitted into evidence in\na hearing held by the department, it shall then be a public record\nsubject to disclosure under articles six and six-A of the public\nofficers law.\n 3. Notwithstanding any provision of law or regulation to the contrary,\na firm that performs attest services for any New York state or municipal\ndepartment, board, bureau, division, commission, committee, public\nauthority, public corporation, council, office, or other governmental\nentity performing a governmental or proprietary function for New York\nstate or any one or more municipalities thereof, or performs attest\nservices specifically required to be performed pursuant to New York\nstate law, or performs attest services for any federal governmental\nentity pursuant to federal law, shall be in conformity with the\nrequirements pursuant to the government auditing standards of the\ncomptroller general of the United States.\n