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A BILL TO BE ENTITLED
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AN ACT
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relating to the peer review program for certified public |
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accountants and certified public accountancy firms. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 901.159, Occupations Code, is amended by |
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amending Subsection (a) and adding Subsections (a-1), (a-2), and |
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(c) to read as follows: |
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(a) In this section: |
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(1) "Compilation" means a service provided by a |
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license holder, the objective of which is to assist management in |
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presenting financial information in the form of financial |
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statements without attempting to obtain or provide an assurance |
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that no material modification should be made to the financial |
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statements in order for the financial statements to comply with |
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applicable financial reporting standards. |
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(2) "Micro-business" has the meaning assigned by |
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Section 2006.001, Government Code. |
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(3) "Small business" has the meaning assigned by |
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Section 2006.001, Government Code. |
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(a-1) The board by rule shall provide for a peer review |
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program to review the work product of a license holder or of the |
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certified public accountancy firm in which the license holder is a |
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member, in lieu of the license holder, to the extent necessary to |
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comply with any applicable standards adopted by generally |
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recognized bodies responsible for setting accounting standards. |
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Peer review must include a verification that each individual in a |
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certified public accountancy firm who is responsible for |
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supervising attest services and who signs or authorizes another |
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person to sign an accountant's reports on financial statements on |
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behalf of the firm meets the competency requirements of the |
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professional standards that apply to those services. |
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(a-2) Subsection (a-1) does not apply to a compilation |
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prepared for the benefit of a micro-business or a small business. |
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(c) The board by rule shall provide that: |
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(1) a license holder or the certified public |
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accountancy firm in which a license holder is a member is not |
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required to be a member of an organization in order to comply with |
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the peer review program under this section; and |
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(2) an organization that administers a peer review |
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program under this section may not charge a license holder or the |
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certified public accountancy firm in which a license holder is a |
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member a different fee for peer review services under this section |
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based on whether the license holder or firm is a member of the |
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organization. |
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SECTION 2. Not later than November 1, 2013, the Texas State |
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Board of Public Accountancy shall adopt rules necessary to |
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implement the changes in law made by this Act. |
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SECTION 3. This Act takes effect September 1, 2013. |