§ 11.82. Peer review compliance.
(a) Unless subject to an exemption under section 8.9(g) of the act (63 P.S. § 9.8i(g)), a firm shall complete a peer review as required under section 8.9(a), (b) and (d) of the act as a condition of renewal of the firm’s license.
(b) Unless required earlier under section 8.9(j) of the act, a new firm that is required to complete a peer review shall undergo its first peer review within 18 months after it is granted its initial license. A firm that had been exempt from the peer review requirement under section 8.9(g)(2) of the act or had otherwise not previously been required to undergo a peer review but begins an engagement to perform an attest activity other than a compilation shall complete a peer review within 18 months after commencing the engagement.
(c) A nonexempt firm that performs an audit or review engagement shall submit with its application for initial licensure or license renewal a letter from the peer review administering organization that evidences the firm’s completion of a peer review.
(d) A firm that performs an audit or review engagement is entitled to an exemption from peer review if any of the three conditions in section 8.9(g) of the act apply. A firm claiming an exemption shall submit with its application for initial licensure or license renewal information that substantiates its entitlement to an exemption as follows:
(1) Exemption under section 8.9(g)(1) of the act. Both of the following:
(i) A letter from an out-of-State peer review administering organization evidencing the firm’s completion of a peer review, within 3 years prior to the date of the application, that meets the requirements of the act and this chapter.
(ii) A statement that the firm’s internal inspection or monitoring procedures require that the firm’s personnel from an out-of-State office to perform an inspection of the firm’s offices in this Commonwealth at least once every 3 years.
(2) Exemption under section 8.9(g)(2) of the act. A notarized statement from the firm that the following conditions have been met:
(i) The firm has not accepted or performed any audit or review engagement during the preceding 2 years.
(ii) The firm does not intend to accept or perform any audit or review engagement during the next 2 years.
(iii) The firm agrees to notify the Board within 30 days of accepting an audit or review engagement and to undergo a peer review within 18 months of commencing the engagement.
(3) Exemption under section 8.9(g)(3) of the act. One or more of the following:
(i) A physician’s statement that a specified medical condition prevents the firm from completing a timely peer review.
(ii) A statement from the appropriate military authority that military service prevents the firm from completing a timely peer review.
(iii) A notarized statement from the firm setting forth unforeseen exigent circumstances that prevent the firm from completing a timely peer review.
(e) A firm that performs no audit or examination engagements but does perform one or more review engagements is only required to undergo an engagement review.
Authority The provisions of this § 11.82 issued under section 8.9(c) of the CPA Law (63 P.S. § 9.8i(c)); amended under section 3(a)(10)—(12) under the CPA Law (63 P.S. § 9.3(a)(10)—(12)).
Source The provisions of this § 11.82 adopted December 1, 2000, effective December 2, 2000, 30 Pa.B. 6194; amended September 22, 2017, effective January 1, 2018, 47 Pa.B. 5940. Immediately preceding text appears at serial pages (364445) to (364446).
Cross References This section cited in 49 Pa. Code § 11.23a (relating to competence to supervise attest services); and 49 Pa. Code § 11.81 (relating to definitions).
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