State Board Peer Review Oversight Committee (PROC)

Mission Statement

To establish oversight of the compliance assurance process, the State Board (Board) shall appoint a Peer Review Oversight Committee (PROC). The PROC will assume responsibility for independent oversight of the administration, application of established standards, qualification of reviewers, and quality control process of any provider of peer review services, inspection services or other examination of practice quality standards adopted by the Board for the purpose of obtaining initial licensure and relicensure of firms performing attest services as defined by the Uniform Accountancy Act (UAA) and state law or board rules. The peer review oversight function will not apply to those areas of firm practice subject to inspection by the Public Company Accounting Oversight

Board (PCAOB).

The purpose of the PROC is to provide reasonable assurance that:

• The participating entities are complying with the administrative procedures acceptable to the Board.
• Reviews are being conducted in accordance with Rule 7.3-7.5 of the Uniform Accounting Act rules and established standards of any board approved programs.
• Results of reviews are evaluated in a consistent manner.
• Peer Review information is provided to firms and reviewers by administering entities in an accurate and timely manner.
• The Board is advised on any other matters related to the peer review program.

Key Provisions

Membership: The Board will set the number of committee members and terms of service by Board policy.

Qualifications: No member of the PROC shall be a current member of the Board, an employee of the Board, an employee of the sponsoring organization, or a member of the ethics committees of the AICPA or CPA Society. The Board will have discretion in evaluating any other relationship that may cause a conflict in fact or appearance. Members of the PROC must meet the qualifications established by the Board, i.e., currently in practice at the appropriate level and their own firm must have received a satisfactory peer review.

Operations: The PROC shall establish policies, procedures and documents as required, subject to board approval, to maintain its independence and meet as necessary to achieve its goals and objectives. The PROC will establish by agreement a relationship with the participating entity for attendance at all meetings of the review committee. Attendance, in person or by electronic conferencing, is integral to the oversight of the program because the PROC must hear the deliberations and considerations made by the Administering Entity.

The PROC shall obtain from the administering entity the standards, procedures, guidelines, training materials and similar documents prepared for use by reviewers and related oversight bodies. The PROC shall also obtain minutes, reports and statistics from the administering entity and other oversight bodies.

Confidentiality: In no case shall the PROC report any matters to the Board that could divulge the identity of a practice unit or licensee. All information obtained by the PROC shall remain confidential.

Reporting: The PROC shall present an annual report to the Board relative to the results of its independent oversight of the compliance assurance program(s). The Board shall use this report and other oversight body’s reports as a basis for continued reliance on the administering entity’s program. The PROC’s report will include the scope of work performed, findings and conclusions.

Oversight Relationship Between Peer Review Administering Entities and State Boards of Accountancy — State Boards with a working Peer Review Oversight Committee: