The following words and terms used in this chapter shall have
the following meanings, unless the context clearly indicates otherwise.
(1) "Engagement Review" means a peer review
evaluating engagements performed and reported on in conformity with
applicable professional standards in all material respects and unless
agreed to otherwise is performed off-site from the reviewed firm's
office and does not provide a basis for expressing any assurance regarding
the firm's system of quality control for its accounting practice.
(2) "Systems Review" means a peer review
designed to provide a peer reviewer with a reasonable basis for expressing
an opinion on whether, during the year under review:
(A) the reviewed firm's system of quality control for
its accounting and auditing practice has been designed in accordance
with quality control standards; and
(B) the reviewed firm's quality control policies and
procedures were being complied with to provide the firm with reasonable
assurance of performing and reporting in conformity with applicable
professional standards in all material respects.
(3) "Review Year" means the one-year (12-month)
period covered by the peer review. Financial statement engagements
selected for review normally would have periods ending during the
year under review. Engagements related to financial forecasts or projections,
or agreed upon procedures engagements, with report dates during the
year under review would also be subject to selection for review.
(4) "Sponsoring organization" means an entity
that meets the standards specified by the board for administering
the review. The board shall periodically publish a list of sponsoring
organizations, which have been approved by the board.
(5) "Firm inspection program" means the process
of firm inspection administered by the PCAOB.
(6) "Rating" of a peer review refers to the
type of report issued. The three types of reports are pass, pass with
deficiencies, or fail. The peer review rating is clearly indicated
in the peer review report. A peer review report with a rating of pass
with deficiencies or fail is considered a deficient review.
(7) "Assigned review date" is the reporting
due date to the board of an accepted peer review report.
(8) "Acceptance date" of a peer review is
the date that the sponsoring organization's peer review report committee
(PRRC), referred to in §527.9(a)(1) of this chapter (relating
to Procedures for a Sponsoring Organization), is presented the peer
review report on a review with the rating of pass and the PRRC approves
the review. The acceptance date and in this case the completion date
of the peer review are the same date and is noted in a letter from
the administering entity to the reviewed firm. The PRRC will be presented
with the peer review report and the firm's letter of response on reviews
with a rating of pass with deficiencies or fail. Ordinarily, the PRRC
will require the reviewed firm to take corrective action(s) and those
actions will be communicated in a letter to the firm from the administering
entity. In this circumstance, the "acceptance date" is defined
as the date that the reviewed firm signs the letter from the administering
entity agreeing to perform the required corrective action(s).
(9) "Completion date" of a peer review is
the date that the sponsoring organization's PRRC, referred to in §527.9(a)(1)
of this chapter, is presented the corrective action and the committee
decides that the reviewed firm has performed the agreed-to corrective
action(s) to the committee's satisfaction and the committee requires
no additional corrective action(s) by the firm. The date is noted
in a final letter from the administering entity to the reviewed firm.
(10) "AICPA Public File" is the file for
firms that are members of AICPA's Employee Benefit Plan Audit Quality
Center, Governmental Audit Quality Center, Private Companies Practice
Section, or other firms that voluntarily post their review information
to this public file on AICPA's web site as a membership requirement.
Information in the public file includes the firm's most recently accepted
peer review report and the firm's response thereto, if any.
(11) "Facilitated State Board Access (FSBA)"
is a secure website accessible only to the state board that provides
the most recently accepted peer review report, the firm's letter of
response (LOR), the corrective action letter (CAL), and the final
letter of acceptance (FLOA).
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Source Note: The provisions of this §527.2 adopted to be effective October 16, 2002, 27 TexReg 9579; amended to be effective October 12, 2004, 29 TexReg 9540; amended to be effective April 15, 2009, 34 TexReg 2379; amended to be effective June 13, 2013, 38 TexReg 3608; amended to be effective August 4, 2016, 41 TexReg 5551; amended to be effective October 10, 2019, 44 TexReg 5786; amended to be effective October 6, 2021, 46 TexReg 6546 |