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S.F. No. 802 - Accountancy Examinations and Peer Reviews Standards Modifications and Rulemaking
Author: Senator Ann H. Rest
Prepared By: Stephanie James, Senate Counsel (651/296-0103)
Date: March 4, 2015


This is the Board of Accountancy agency bill.  It makes modifications in its chapter to eliminate the use of the undefined term “financial statements” in certain instances, instead using the defined term “attest;” modifies the definitions of “attest,” “peer review,” and "report;" permits the agency to adopt rules for attesting; raises the maximum fine the board may impose; permits an out-of-state firm to perform certain activities; precludes use of certain language on attest service without a license; and makes several changes of a housekeeping nature.

Section 1 [Attest] modifies the definition of “attest” to align with model language in the Uniform Accountancy Act developed by the American Institute of CPAs and the National Association of State Boards of Accountancy.

Section 2 [Peer Review] modifies the definition of “peer review” to include CPA firms and individuals.

Section 3 [Principal Place of Business] eliminates superfluous words in the definition of “principal place of business.”

Section 4 [Report] modifies the definition of "report" to align the language for changes made to section 1.


Section 5 [State] adds the Commonwealth of the Northern Mariana Islands to the list of U.S. territories.

Section 6 [Officers; Proceedings] is a technical correction.

Section 7 [Rules] authorizes the Board of Accountancy to adopt rules that reflect recognized standards for attesting.

Section 8 [General] permits an out-of-state firm to perform an examination, review, or agreed-upon procedures engagement, performed according to industry standard to include reference to clause (5) added in section 1.

Section 9 [Qualifications] eliminates the use of the undefined phrase “financial statements” and aligns the language with changes in section 1.

Section 10 [Violation; Penalties; Costs of Proceeding] raises the maximum fine, from $2,000 to $5,000, that the Board of Accountancy is authorized to impose for a violation of  law.

Section 11 [Unlawful Acts] precludes people not licensed by the Board of Accountancy from using certain language on an attest service and aligns language with changes made in section 1.

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