Texas State Board of Public Accountancy
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  William Treacy, Executive Director  

The Peer Review Program Overview

Refer to Chapter 527 Peer Review, of the Board Rules.
Rule 527.1(a) Pursuant to §901.159 of the Act, the board establishes a peer review program to monitor CPAs' compliance with applicable accounting, auditing and other attestation standards adopted by generally recognized standard-setting bodies. The program may include education, remediation, disciplinary sanctions or other corrective action where reporting does not comply with professional or regulatory standards.

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Forms with the notation "(fillable)" offer you the option of entering your information on-screen before printing and sending it to the Board. If you still have questions after reviewing the forms on-line, contact the CPE/Licensing Division at the Board.

Services Performed That Require Enrollment In The Peer Review Program

A firm must be peer reviewed if it does audits, reviews, compilations, and any "special reports" that purport to express an opinion that the financial statements or any material portion thereof are in accordance with GAAP and the CPA firm did its engagement in accordance with the Statement on Auditing Standards (SAS) or the Statement on Standards for Accounting and Review Services (SSARS) as it applies to Reviews and Compilations (only).

A firm that does not perform any of the above services may claim an exemption.

Management Use only Compilations completed under "SSARS 19" up to December 14, 2015 will still require a peer review.

Beginning December 15, 2015, if the highest level of service performed is Preparation Engagements in compliance with "SSARS 21", the firm may claim an exemption.

Please refer to AICPA Comparison of Engagement Letter Requirements for further clarification.

Requirements For Firms Enrolling In A Peer Review Program

When a firm begins performing services that require a peer review, it is the responsibility of the firm to notify the board within 30 days of the commencement of the work that the firm is subject to peer review.

When a review has been completed and the firm receives the Final Letter of Acceptance from the sponsoring organization, a copy of the completed review must be sent to the board along with the Peer Review Compliance Reporting Form.

Requirements For Firms Claiming An Exemption From The Peer Review Program

Firms that are not required to be enrolled in the Peer Review Program can claim an exemption (refer to Board Rule 527.4). To do this, the FORM SHOWN BELOW MUST BE COMPLETED:

Affidavit for Peer Review (L0031)