(a) A firm required to undergo a peer review under this chapter shall engage the services of a practitioner or firm holding a permit issued under § 466-7 to perform the following procedures to supplement the peer review report:

Terms Used In Hawaii Revised Statutes 466-36

  • Attest: means providing the following financial statement services:

    (1) Any audit or other engagement to be performed in accordance with the statements on auditing standards of the American Institute of Certified Public Accountants;

    (2) Any compilation or review of a financial statement to be performed in accordance with the statements on standards for accounting and review services of the American Institute of Certified Public Accountants;

    (3) Any examination of prospective financial information to be performed in accordance with the statements on standards for attestation engagements of the American Institute of Certified Public Accountants;

    (4) Any engagement to be performed in accordance with the government auditing standards, also known as the Yellow Book, issued by the United States Government Accountability Office; and

    (5) Any engagement to be performed in accordance with the standards of the Public Company Accounting Oversight Board. See Hawaii Revised Statutes 466-3

  • Board: means the state board of public accountancy established under § 466-4. See Hawaii Revised Statutes 466-3
  • Firm: means a sole proprietorship, a corporation, a partnership, a limited liability company, or a limited liability partnership. See Hawaii Revised Statutes 466-3
  • Peer review: means a study, appraisal, or review of one or more aspects of the professional work of a firm that issues attest reports by a person or persons who hold permits to practice public accountancy under § 466-7 or are licensed to practice public accountancy in any other state and who are not affiliated with the firm being reviewed. See Hawaii Revised Statutes 466-3
  • Permit: means a permit to actively practice public accountancy issued under § 466-7. See Hawaii Revised Statutes 466-3
  • Report: when used with reference to financial statements, means an opinion, report, or other form of language that states or implies the measure of assurance as to the reliability of any financial statements, and that also includes, or is accompanied by, any statement or implication that the firm issuing it has special knowledge or competence in accounting or auditing. See Hawaii Revised Statutes 466-3
  • Sponsoring organization: means a third-party entity that meets the standards specified by this part for administering a peer review. See Hawaii Revised Statutes 466-31
  • State: means any state, territory, or insular possession of the United States, except that "this State" means the State of Hawaii. See Hawaii Revised Statutes 466-3
(1) Obtain from the reviewed firm a list of Hawaii attest engagements included in the scope of the peer review, in accordance with the American Institute of Certified Public Accountants Standards for Performing and Reporting on Peer Reviews;
(2) Select one or more engagements from the list of engagements obtained from the reviewed firm;
(3) Obtain from the reviewed firm, the reports, financial statements, work papers, and work product resulting from the attest engagements selected;
(4) Read and compare the reports, work papers, and work product to an appropriate disclosure checklist to evaluate the firm’s compliance with professional standards; and
(5) Document all instances of noncompliance with professional standards detected while performing the procedures listed in this section.
(b) The procedures required by this section shall be performed in accordance with the Statements on Standards for Attestation Engagements adopted by the American Institute of Certified Public Accountants.
(c) The Hawaii supplement to the peer review report to the firm and to the board shall state, at a minimum, the following:

(1) Name of firm;
(2) Date the Hawaii supplement to the peer review report was completed;
(3) Period that was reviewed;
(4) Any Hawaii office or offices selected;
(5) Number and type of Hawaii engagements reviewed;
(6) Any limitations that may have been imposed upon the peer reviewer in complying with subsection (a), including the selection of Hawaii engagements and peer review standards by the peer reviewer; provided that the acceptability of the limitations shall be subject to board approval; and
(7) The procedures performed and any instances of noncompliance with professional standards found.
(d) The practitioner or firm selected to perform the procedures required by this section shall:

(1) Hold a permit to practice under § 466-7;
(2) Not be affiliated with the firm being reviewed; and
(3) Be recognized as a qualified peer reviewer by a sponsoring organization.
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