NY Peer Review Rule Change
New York State has changed the rules for peer reviews for CPA firms that provide attest work for their clients. Under prior law, CPA firms with one or two CPAs were exempt from the peer review requirement.
Effective on October 23, 2017, this exception has been removed. As a result, all CPA firms that provide attestation services, even those with one or two CPAs, are now subject to the peer review requirement. For this purpose, attestation services include audits and reviews. Compilations are not considered attestation services.
Affected firms with one or two CPAs are required to notify the New York State Department of Education of their change in status by November 23, 2017. This notification must include the name and registration number of the firm, along with the date on which the attestation engagement first began. The notification can be done in a letter or email to the New York State Department of Education, CPA Unit (http://www.op.nysed.gov/prof/cpa/cpacontact.htm).
Such firms must enroll in a peer review program within a year. (This time period could be shortened, so enrolling sooner is advisable.) The firm must complete a peer review within 18 months following the effective date of this new law and every three years thereafter.