N.Y. Education Law § 7410: Mandatory peer review

§ 7410. Mandatory peer review. 1. The department shall require as a

condition to renewal of registrations under section seventy-four hundred

eight of this article, that unless otherwise exempted by the department,

applicants for firm registrations, undergo, no more frequently than once

every three years, except pursuant to a disciplinary action brought

under section seventy-four hundred eight of this article, peer reviews

of the firm's attest services conducted in such manner as the

commissioner shall specify in regulations, and such review shall include

a verification that individuals in the firm who are responsible for

supervising attest services sign or authorize someone to sign the

accountant's report on the financial statements on behalf of the firm

meet the competency requirements set out in the professional standards

for such services, provided that any such regulations:

a. shall include reasonable provisions for compliance by an applicant

for firm registration showing that it has, within the preceding three

years, undergone a peer review in this state or a peer review in another

state that is a satisfactory equivalent to peer review required pursuant

to this section;

b. shall require, with respect to any organization administering peer

review programs contemplated by paragraph a of this subdivision, that it

be subject to evaluations by the department or its designee, to

periodically assess the effectiveness of the peer review program under

its charge;

c. shall require the peer review to be conducted by reviewers

acceptable to the department in accordance with the commissioner's

regulations; and

d. may require with respect to peer reviews contemplated by paragraph

a of this subdivision that firms undergoing peer reviews and

organizations administering peer review programs timely remit such peer

review reports to the state board for public accountancy and such

reports shall be maintained by the board in a manner consistent with

subdivision two of this section.

2. Notwithstanding any provision of law to the contrary, the reports

submitted in accordance with subdivision one of this section shall be

confidential and shall not constitute a public record and shall not be

subject to disclosure under articles six and six-A of the public

officers law. However, when any such report is admitted into evidence in

a hearing held by the department, it shall then be a public record

subject to disclosure under articles six and six-A of the public

officers law.

3. Notwithstanding any provision of law or regulation to the contrary,

a firm that performs attest services for any New York state or municipal

department, board, bureau, division, commission, committee, public

authority, public corporation, council, office, or other governmental

entity performing a governmental or proprietary function for New York

state or any one or more municipalities thereof, or performs attest

services specifically required to be performed pursuant to New York

state law, or performs attest services for any federal governmental

entity pursuant to federal law, shall be in conformity with the

requirements pursuant to the government auditing standards of the

comptroller general of the United States.