Staring with renewals in 2014, our requirement to report peer review status will take place every two years along with our bi-annual renewal. This is instead of reporting every 3 years. Should make the reporting easier. We will have one less deadline to track.
The following article is reprinted with permission of the California Board of Accountancy.
STREAMLINING PEER REVIEW REPORTING
Changes have been made to the Peer Review reporting requirements! Beginning January 1, 2014, the process will be streamlined and reporting peer review information to the CBA will be done at the time of license renewal. Even though reporting will be done at license renewal, peer reviews are still only required once every three years. In short, you need to report your peer review every two years and have a peer review every three years.
The CBA will be sending information to licensees highlighting the changes and providing specific information regarding how and when to file your Peer Review Reporting (PR-1) Form. You can also check our website at www.cba.ca.gov for updated information. Below are some FAQs regarding the changes to the peer review reporting requirements.
Q: If I have to submit a Peer Review Reporting Form to the CBA every two years at the time of license renewal, do I have to have a peer review every two years?
A: No. Even though reporting will be done at the time of license renewal, peer reviews are still only required every three years. This means that some years you will report the same peer review results two renewal cycles in a row.
Q: I submitted a Peer Review Reporting Form to the CBA during the three-year phase-in period. When do I need to report again?
A: Beginning January 1, 2014, the CBA will require all licensees to report their specific peer review information at the time of license renewal. CBA Regulation Section 45 (CBA Regulation) is available on the CBA website at http://www.dca.ca.gov/cba/ laws_and_rules/regs6-s45.shtml.
Q: I am subject to peer review, but am planning on retiring and renewing my license in an inactive status. Do I need to have a peer review?
A: No. Because of a law change that took effect on January 1, 2013, only licensees renewing in an active status or converting to active status are required to have a peer review. If you renew in an inactive status, you do not need to have a peer review. However, you are required to report specific peer review information as required on the PR-1 Form to the CBA.
Q: I am due to report my peer review on July 1, 2013, and my license expires on October 31, 2013, at which time I will be retiring and renewing in an inactive status. Do I need a peer review?
A: No. Only licensees renewing in an active status are required to have a peer review as a condition of license renewal. If you renew your license in an inactive status, you are not required to have a peer review. However, you are required to report specific peer review information as required on the PR-1 Form to the CBA by the July 1, 2013 reporting deadline.
Q: Do I need to have a peer review if I dissolve my corporation/partnership prior to license renewal?
A: No. Peer reviews are a condition of active license renewal. A peer review would not be required if the corporation/partnership is dissolved and the CBA is notified of the dissolution prior to the renewal of the license.
For additional information, please contact the Peer Review Unit at (916) 561-1706 or firstname.lastname@example.org
Full disclosure: The California Board of Accountancy is the regulatory agency with oversight of my CPA practice. As mentioned above, this article reprinted with permission of the Board.