(a)  The board shall require, as a condition to the renewal of permits for practice units under § 5-3.1-9, that applicants undergo peer reviews conducted no more frequently than once every three (3) years in any manner and with any satisfactory result that the board specifies. The review shall include verification that the individuals in the firm who are responsible for supervising attest and compilation services and signing or authorizing someone to sign the accountant’s report on the financial statements on behalf of the firm meet competency requirements set out in the professional standards for such services. Any requirements established by the board regarding peer reviews shall:

(1)  Be promulgated reasonably in advance of the time when it must first be met; and

(2)  Provide for compliance by an applicant upon the showing that it has undergone a satisfactory peer review performed for other purposes, such as those performed by the American Institute of Certified Public Accountants in connection with its peer-review programs, which was substantially equivalent to the review required under this subsection, and that this review was completed within the three (3) years immediately preceding the renewal period.

Terms Used In Rhode Island General Laws 5-3.1-10

  • Attest: means providing the following services:

    (i)  Any audit or other engagement to be performed in accordance with the Statements on Auditing Standards (SAS);

    (ii)  Any review of a financial statement to be performed in accordance with the Statement on Standards for Accounting and Review Services (SSARS);

    (iii)  Any examination of prospective financial information to be performed in accordance with the Statements on Standards for Attestation Engagements (SSAE);

    (iv)  Any engagement to be performed in accordance with the standards of the public company accounting oversight board;

    (v)  Any examination, review, or agreed-upon procedures engagement to be performed in accordance with the SSAE, other than an examination described in subsection (1)(iii); and

    (vi)  The statements on standards specified in this definition shall be adopted by reference by the board pursuant to rulemaking and shall be those developed for general application by recognized national accountancy organizations, such as the American Institute of Certified Public Accountants, and the Public Company Accounting Oversight Board. See Rhode Island General Laws 5-3.1-3

  • Board: means the board of accountancy, a public authority created by § 5-3. See Rhode Island General Laws 5-3.1-3
  • Compilation: means providing a service to be performed in accordance with the Statement on Standards for Accounting and Review Services (SSARS), as adopted by the American Institute of Certified Public Accountants, that is presenting in the form of financial statements, information that is the representation of management without undertaking to express any assurance on the statements. See Rhode Island General Laws 5-3.1-3
  • Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Peer review: means a study, appraisal, or review of one or more aspects of the professional work of a practice unit engaged in the practice of public accountancy in this state, by a licensee or licensees who are not affiliated with the practice unit being reviewed. See Rhode Island General Laws 5-3.1-3
  • person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6
  • report: includes any form of language that disclaims an opinion when that language is conventionally understood to imply any positive assurance as to the reliability of the attested information or compiled financial statements referred to and/or any special competence on the part of the person or practice unit issuing that language; and it also includes any other form of language that is conventionally understood to imply that assurance and/or special knowledge or competence. See Rhode Island General Laws 5-3.1-3
  • State: means the states of the United States, the District of Columbia, Puerto Rico, Guam, and the U. See Rhode Island General Laws 5-3.1-3
  • Statute: A law passed by a legislature.
  • Subpoena: A command to a witness to appear and give testimony.
  • Testify: Answer questions in court.

(b)  The proceedings, records, and work papers of a peer-review committee appointed by the board for the purpose of conducting peer reviews under this section shall be privileged and shall not be subject to discovery, subpoena, or other means of legal process or introduction into evidence in any civil action, arbitration, administrative proceeding, or state accountancy board proceeding. No member of the peer-review committee or other person involved in the peer-review process shall be permitted or required to testify in the civil action, arbitration, administrative proceeding, or state accountancy board proceeding as to any matters produced, presented, disclosed, or discussed during or in connection with the peer-review process, or as to any findings, recommendations, evaluations, opinions, or other actions of the committees or any members of the committees. Information, documents, or records that are publicly available shall not be construed as immune from discovery or use in civil actions, arbitration proceedings, administrative proceedings, or state accountancy board proceedings merely because they were presented or considered in connection with the peer-review process. The privilege created by this statute also does not apply to materials prepared in connection with a particular engagement merely because they are subsequently presented or considered as part of the peer-review process; nor does it apply to disputes between review committees and practice units subject to a peer review arising from the performance of the review. The privilege similarly does not apply, notwithstanding any provision in this section to the contrary, to the board or its members, who, so long as they are acting in their official capacities, have access to any and all records, reports, work papers, and other documents and materials that may at any time have been in the possession of or prepared by a peer-review committee during the performance of its duties.

History of Section.
P.L. 1995, ch. 159, § 2; P.L. 2001, ch. 336, § 1; P.L. 2019, ch. 308, art. 1, § 3.