CAC Task Force Considers PROC

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State Board Report

August

A Peer Review Oversight Committee (PROC) that could be provided by NASBA is being mapped out by a task force of NASBA’s Compliance Assurance Committee, the committee’s chair, John F. Dailey, Jr. (NJ) reported to the NASBA Board of Directors. The task force has been asked to outline what a NASBA PROC should do, and then NASBA staff will work out what would be needed to operationalize that project, President and CEO Ken L. Bishop explained.

“We want to provide what the State Boards would expect from us. It is important for the task force to say here is the level of quality review that meets the standard of the best PROC in the country,” President Bishop said.

A NASBA PROC was discussed during the Regional Meetings, as State Boards considered how the AICPA’s proposal for revising the administration of its Peer Review Program would impact them. While some Boards believe their PROC works well with the current administering entity, frequently the State CPA Society, other Boards indicated they would welcome having the option of using a NASBA PROC. Boards are uncertain as to which CPA Societies will continue to administer the Peer Review Program, and which states will have to change administering entities.

Mr. Dailey observed: “Nobody knows where this is going to settle. The Compliance Assurance Committee is speaking with the Peer Review Board. “ Twenty-six Boards responded to the AICPA’s peer review reorganization proposal by the June 30 deadline. This month AICPA is expected to release its plans for revising the administration of the program. Mr. Dailey said that he has reminded AICPA Vice President Jim Brackens of the importance of State Boards being involved in the oversight of the process, including the selection of their administering entity.