(a) As used in this part, unless the context otherwise requires, “review committee” means any person or persons carrying out, administering or overseeing peer review.
Terms Used In Tennessee Code 62-1-201
Attest: means providing the following services:(A) Any audit or other engagement to be performed in accordance with the Statements on Auditing Standards (SAS). See Tennessee Code 62-1-103
Peer review: means a study, appraisal or review of one (1) or more aspects of the professional work of a CPA firm that performs attest services by a qualified person or persons who hold certificates and who are not affiliated with the CPA firm being reviewed. See Tennessee Code 62-1-103
Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105
Professional: means arising out of or related to the specialized knowledge or skills associated with CPAs. See Tennessee Code 62-1-103
Report: when used with reference to attest services, means an opinion, report or other form of language that states or implies assurance as to the reliability of any financial statements or assertion. See Tennessee Code 62-1-103
Rule: means any rule, regulation or other written directive of general application duly adopted by the board in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. See Tennessee Code 62-1-103
(b) The board shall require, by rule, as a condition to renewal of permits under this section, that applicants enroll in a board approved peer review program and undergo at least once every three (3) years, peer reviews conducted in the manner that the board specifies. The review shall include a verification that individuals in the firm who are responsible for supervising attest services and sign or authorize someone to sign the accountant’s report on the financial statements on behalf of the firm meet the experience requirements set out in the professional standards for those services; provided, that the rule:
(1) Shall include reasonable provision for compliance by an applicant showing that the applicant has, within the preceding three (3) years, undergone a peer review that is a satisfactory equivalent to peer review generally required pursuant to this subsection (b);(2) May require, with respect to any organization administering peer review programs contemplated by this section, that the organization be subject to evaluations by the board or the board’s designee, to periodically assess the effectiveness of the peer review program under its charge;(3) Shall require with respect to peer reviews contemplated by this section that licensees timely remit any peer review documents as specified by board rule or upon board request and that such documents be maintained by the board pursuant to § 62-1-116; and(4) Shall require, with respect to peer reviews contemplated by subdivision (b)(1), that the peer review processes be operated, and documents maintained, in a manner designed to preserve confidentiality under §§ 62-1-116 and 62-1-202 and that no third party, other than the board or the board’s designee, shall have access to documents furnished or generated in the course of the peer review.
