CBA updates: action taken on key regulatory and policy changes.

• Author: Allen, Bruce C.
• Position: CapitolBeat

The California Board of Accountancy at its July meeting discussed and took action On some key regulatory and policy changes related to the peer review program, the retired status license designation and interstate practice legislation.

Peer Review Program Update

With the first two rounds of mandatory peer review reporting complete, the CBA issued a higher than expected number of citations to California CPA licensees who failed to respond to repeated requests from the CBA as to whether they were subject to the peer review reporting requirement.

These citations carry a $250 fine and could lead to larger enforcement actions if not addressed by the licensee.

The final round of peer review reporting forms were sent in July to licensees with a license number ending in 67-00. This group will have until July 1, 2013, to complete and submit the peer review reporting form.

Because California does not require sole practitioners to register as firms, the CBA must contact all CPAs to ask whether or not they are required under the new law to undergo a peer review Every CPA is required to respond to this inquiry and file a peer review reporting form with the CBA, even if it is just to notify the CBA that they are not subject to a peer review.

If you have received a notice to report your peer review status, make sure you submit the form by the deadline. Reporting is quick and easy with the online peer review reporting from at www.dca.ca.gov/cba/peerreview.

To ensure that CPAs and firms are complying with the law, CBA enforcement staff is verifying that the forms submitted by licensees are accurate and properly report the services provided by firms. The enforcement staff is auditing and investigating a random sample of the forms submitted that indicate no peer review is required.

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To ease reporting compliance, the CBA is pursuing a regulatory change to synchronize the peer review reporting date with the licensee's renewal date. This should decrease the number of licensees that failed to timely submit their peer review reporting form.

The changes will also clarify reporting requirements for firms performing specific services for die first time, including new licensees and those not previously subject to a peer review.

This regulatory change will emphasize that any firm that performs a. specific service--such as an audit, review or compilation--for the first time must complete a peer review within 18 months of completing those services...