Section 400-RICR-00-00-1.9 - Peer Review Standards1.9.1Peer Review ProgramA. Applicability. Participation in the program is required of each practice unit licensed or registered with the Board who performs accounting or auditing engagements, including, but not limited to, audits, reviews, compilations, forecasts, projections or other special reports.B. Operation. Pursuant to R.I. Gen. Laws § 5-3.1-10, it is a condition of renewal of a practice unit permit for the firm to undergo periodic peer reviews no more frequently than once every three (3) years. On renewal, the firm shall attest and provide proof that the firm is in compliance with R.I. Gen. Laws § 5-3.1-10 and § 1.9 of this Part. Each practice unit enrolled in a program of an approved sponsoring organization shall adopt the review date assigned by the sponsoring organization.C. Minimum Standards. The Board hereby adopts the "Standards for Performing and Reporting on Peer Reviews" promulgated by the AICPA as its minimum standards for peer review of practice units; provided, however, that peer reviews performed by the National Society of Public Accountants shall be deemed to meet these requirements.D. Approved Sponsoring Organizations. The Securities and Exchange Commission Practice Section, Private Companies Practice Section, National Society of Public Accountants, AICPA Peer Review Program, and New England Peer Review are approved sponsoring organizations. Other organizations may apply to be added to the Board's list of approved sponsoring organizations.E. Exemptions. A practice unit which does not perform accounting or auditing engagements, including, but not limited to, audits, reviews, compilations, forecasts, projections, or other special reports shall certify that fact to the Board on renewal and shall be exempt from peer review requirements. A practice unit which begins providing these services must have a peer review within eighteen (18) months of the date such services were first provided.1.9.2Peer Review OversightA. As necessary, the full board may also sit as the Peer Review Oversight Committee to oversee the peer review program created hereunder and perform the following functions: 1. Designate and monitor the sponsoring organizations for compliance with and implementation of the minimum standards for performing and reporting on peer reviews;2. Respond to all appropriate requests for clarification or interpretation of these Regulations and determine any and all questions or disputes which might arise with respect to the scope, applicability or effect of these Regulations; and3. Determine appropriate remedial action or move for the revocation, suspension or refusal to renew any annual permit for failure to comply with this program.1.9.3Mergers, Dissolutions and SeparationsA. Mergers. In the event that two (2) or more practice units of disparate sizes are merged or combined, the surviving practice unit shall retain the peer review year of the practice unit with the largest number of staff prior to merger or combination. In the event that two (2) or more practice units with the same number of staff are merged or combined, the surviving practice unit shall retain the peer review year of the practice unit with the earlier peer review year prior to the merger or combination.B. Dissolutions or Separations. In the event a practice unit is divided or dissolved, any new practice unit or units created therefrom shall retain the peer review year of the former practice unit. In the event such period is less than eighteen (18) months, a new year shall be assigned so that the review occurs after eighteen (18) months of operation.C. Exceptions. The Board, upon a showing that strict compliance with §§1.9.3(A) and (B) of this Part will cause hardship, may authorize a change in a practice unit's peer review year.1.9.4ExtensionsThe Board may accept an extension, not to exceed one hundred eighty (180) days, granted by a sponsoring organization for the conduct of a peer review. The practice unit shall notify the Board within twenty (20) days of the date such extension is received by the practice unit.
1.9.5EnforcementA. Permits. In the event a practice unit subject to peer review does not successfully complete its peer review by the requisite deadline, the Board shall:1. Withhold issuance of the annual permit of the practice unit until the peer review is satisfactorily completed; and2. Withhold issuance of the annual permit of each individual licensee of the practice unit who was personally and substantially responsible for the failure of the practice unit to successfully complete the peer review.B. Assessment. In the event a practice unit subject to peer review does not successfully complete its peer review by the end of its peer review year, the Board may assess a penalty of not more than two hundred fifty dollars ($250.00) against such practice unit. The Board may, for good cause shown, waive this penalty. The penalty provided for herein may be assessed whether or not the practice unit has sought or received an extension in accordance with §1.9.4 of this Part.1.9.6ReportingA. Enrolled practice units. A practice unit which is enrolled in a peer review program of an approved sponsoring organization shall submit to the Board a copy of the letter or notice of acceptance issued by the sponsoring organization at the conclusion of the peer review process. In the event the sponsoring organization does not issue a letter of acceptance the practice unit shall submit to the Board a copy of the peer review report, the letter of comments, the matters for further consideration and the practice unit's letter of response, if any.B. Practice Units Not Enrolled. A practice unit not enrolled in a peer review program of an approved sponsoring organization shall engage a reviewer who is authorized to perform peer reviews for such an organization. The reviewer shall apply the minimum standards described in §1.9.1(C) of this Part and shall submit a report directly to the Board. In the event a letter of comments or matters for further consideration are issued with the report, the practice unit shall submit its letter of response to the Board.C. If a practice unit receives notice of termination from its peer reviewer, the practice unit shall notify the Board and provide an explanation and a plan of action to ensure compliance with the peer review requirement to the Board within twenty (20) days of the termination.400 R.I. Code R. 400-RICR-00-00-1.9
Amended effective 8/4/2020
Amended effective 4/4/2022
Amended effective 2/19/2023