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Regents Adopt Quality Review Regulations
By NYSSCPA.org Staff
Posted on 12/16/10

The New York State Board of Regents voted Dec. 14 to adopt regulations that implement the mandatory quality review provisions of New York State's accountancy reform law. The law requires that every firm that provides attest services in New York State -- except for sole proprietorships and firms with two or fewer accounting professionals on staff -- be registered and receive a quality review every three years. Any firm who provides Yellow Book services for governmental agencies is not included in the exemption.

The regulations establish a state Quality Review Oversight Committee (QROC), comprised of five members appointed by the state Board of Regents who will serve five-year terms, and will oversee the first mandatory quality review program to be regulated by New York State.

The law requires that the state adopt the regulations implementing the mandatory program by Jan. 1, 2011, which led the Regents to vote for both emergency adoption of the regulations, which become effective Dec. 17, 2010; and final adoption, which make the same rules permanent on Jan. 5, 2011. The NYSSCPA strongly supported the creation of a state's mandatory quality review program and worked with the State Education Department towards the program's adoption.

Daniel J. Dustin, executive secretary of the New York State Board of Public Accountancy, is pleased with the results and thanks the NYSSCPA for its hard work and input.

"It's really a reflection of all the time so many people spent with these regulations," he said. "The regulations were very well-vetted, so they include everything I think it is necessary for them to include, which also made for a very smooth transition."

The Jan. 1, 2011 rulemaking deadline specified in the accountancy reform law is one year in advance of the Jan. 1, 2012 effective date for New York’s mandatory quality review statute.