1. The practice of the profession of public accountancy is defined as holding one’s self out to the public, in consideration of compensation received or to be received, offering to perform or performing for other persons or for one’s employer, services which involve preparing, signing, delivering, or issuing or causing to be prepared, signed, delivered or issued any financial, accounting or related statement or any opinion on, report on, or certificate to such statement if, by reason of the signature, or the stationery or wording employed, or otherwise, it is indicated or implied that the practitioner has acted or is acting, in relation to said financial, accounting, or related statement, or reporting as an independent accountant or auditor or as an individual having or purporting to have expert knowledge in accounting, or, auditing, whether the practitioner is in public practice, or is in the employ of another person or entity which is not required to register under section 7408 of this article.

2. The practice of the profession of public accountancy is also defined as offering to perform or performing tax preparation or tax advisory services while holding out to the public under the title of “Certified Public Accountant” or “Public accountant’ or under the designation of “CPA” or “PA” in consideration of compensation received or to be received.

1. "Attest" means the providing by licensees of the following public accountancy services which all require the meeting of independence standards established under section 7402-a of this article:

a. any audit to be performed in accordance with generally accepted auditing standards or other similar standards developed by an entity established by federal statute, or by a recognized international or national professional accountancy organization, acceptable to the department in accordance with the commissioner's regulations, that establishes auditing standards;

b. any review of a financial statement to be performed in accordance with standards developed by an entity established by federal statute, or by a recognized international or national professional accountancy organization, acceptable to the department in accordance with the commissioner's regulations, that establishes standards for performing such services; or

c. any examination of prospective financial information to be performed in accordance with standards developed by an entity established by federal statute, or by a recognized international or national professional accountancy organization, acceptable to the department in accordance with the commissioner’s regulations, that establishes standards for performing such services.

d. any attestation engagement to be performed in accordance with attestation standards developed by an entity established by federal statute, or by a recognized international or national professional accountancy organization, acceptable to the department in accordance with the commissioner's regulations, that establishes standards for performing such services.

2. "Compilation" means providing a service to be performed in accordance with standards developed by an entity established by federal statute, or by a recognized international or national professional accountancy organization, acceptable to the department in accordance with the commissioner’s regulations, that establishes such standards, and that is presenting in the form of financial statements, information that is the representation of management or owners without undertaking to express any assurance on the statements.

3. "Firm" means a partnership, a professional service limited liability partnership, professional service limited liability company, professional corporation or a sole proprietorship.

4. “Non-CPA services” means those services that Certified Public Accountants may lawfully provide and that are not prohibited as unauthorized practice of public accountancy when provided by a person who is not licensed as a certified public accountant or public accountant pursuant to this article.

1. A. The board of regents, upon recommendation of the state board for public accountancy, is empowered to establish standards of practice for attest and compilation services by certified public accountants and public accountants, and by firms registered under Section 7408 of this article. Non-CPA services, including tax preparation or tax advisory services, performed by a certified public accountant or public accountant holding out to the public with such title shall be subject to ethical guidelines that shall be established by the board of regents, upon recommendation of the board for public accountancy, provided however that nothing in this section shall be construed to authorize the board of regents to adopt any rules and regulations to establish standards of practice for services other than attest and compilation services performed by a certified public accountant and public accountants. Any rules and regulations adopted by the board of regents pursuant to subdivision 9 of section 6509 of this title shall be limited in its application to only attest and compilation services performed by certified public accountants and public accountants, provided however that all other provisions of section 6509, as well as the provisions of 6509-b and 6509-c shall apply to all services performed by a certified public accountant or public accountant holding out to the public with such title.

B. A certified public accountant who qualified for licensure based upon experience in accounting, tax preparation, or tax advisory services and who is responsible for supervising attest or compilation services and signs or authorizes someone to sighn the accountants’ report on the financial statement on behalf of the firm, shall meet competency and experience requirements satisfactory to the state board for public accountancy and in accordance with the rules of the regents. The experience may include employment in the practice of public accountancy or such other equivalent experience as determined by the state board for public accountancy and shall be supervised and verified by a certified public accountant or public accountant in good standing licensed in this state.

2. Any regulations adopted by the Board of Regents establishing standards of practice for attest services or for standards of auditor independence shall not be inconsistent with respect to standards of the Securities Exchange Commission, the Public Company Accounting Oversight Board, or the federal General Accounting Office applicable to certified public accountants practicing within the jurisdiction of such federal entities.

1. There is hereby established within the department of education a state board for public accountancy which shall consist of twenty-five members, twelve of whom shall be public members and thirteen of whom shall be certified public accountants, who shall have and exercise the powers of the board as set forth in section seventy-four hundred three-a of this article. Notwithstanding any provision of law to the contrary, section 6508 of article 130 of this title shall be inapplicable to the state board for public accountancy.

2. Twelve public members shall be appointed by the governor, with the advice and consent of the Senate; and thirteen members all of whom shall be certified public accountants, shall be appointed by the board of regents. In appointing members of the state board for public accountancy who are certified public accountants, the board of regents shall appoint members from a broad range of public accountancy practice experience as well as from those not in public practice who represent the state geographically, and shall strive to provide representation from firms registered pursuant to Section 7408 this article which employ: (a) more than five hundred certified public accountants in this state; (b) at least twenty-five but no more than four-hundred ninety nine certified public accountants in this state; and (c) no more than twenty-four certified public accountants in this state; no two members of the state board for public accountancy shall be from the same entity. The term of each member shall be five years and a member may be reappointed for a second term. The term of those first appointed shall be arranged so that as nearly as possible an equal number shall terminate annually. A vacancy occurring during a term shall be filled by the respective appointing authority for the unexpired term. Any public member appointed by the governor shall have accounting or financial management related literacy or expertise but shall not be, nor within three years immediately preceding appointment have been:

a. licensee or person otherwise subject to the supervision or regulation of the board for public accountancy; or

b. person maintaining a contractual relationship with a licensee of such board, which would constitute more than two percentum of the practice of any such licensee.

Each state professional association or society of the public accountancy profession may nominate one or more candidates for each appointment to be made to such state board by the board of regents, but the board of regents shall not be required to appoint candidates so nominated. In addition, the state board for public accountancy shall establish a roster of auxiliary members from candidates nominated by such professional associations or societies for appointment by the board of regents to serve as members of the state board for public accountancy solely for purposes of disciplinary proceedings under sections 7403-b and 7403-d of this article.

3. Each member of a state board for public accountancy shall receive a certificate of appointment, shall before beginning his or her term of office file a constitutional oath of office with the secretary of state, shall receive up to one hundred dollars as prescribed by the board of regents for each day devoted to board work, and shall be reimbursed for his or her necessary expense. Any member appointed by the board of regents may be removed from a board by the board of regents for misconduct, incapacity or neglect of duty.

4. The state board for public accountancy shall appoint an executive secretary and director of professional conduct, both of whom shall be certified public accountants, and a counsel. Each shall serve at the pleasure of the state board for public accountancy and have powers and duties prescribed by such board. The counsel shall be an attorney-at-law licensed to practice in this state. The executive secretary, counsel and director of professional conduct shall not be current members of such board.

1. The state board for public accountancy may appoint and fix the compensation of all employees the board deems necessary to carry out its duties within the amounts appropriated therefor and prescribe their powers and duties.

2. The state board for public accountancy shall receive complaints alleging violation of applicable law or regulations by a certified public accountant and investigate upon such complaint or upon its own motion or initiative.

3. For purposes of investigation and disciplinary proceedings pursuant to section sixty-five hundred ten of this title, the state board for public accountancy may investigate the actions of any licensee as evidenced by an imposition of a disciplinary sanction upon a registered accounting firm or accountant by the Public Company Accounting Oversight Board or the Securities and Exchange Commission pursuant to Sections 105 or 107 of the Sarbanes-Oxley Act of 2002 (Public Law 107-204).

4. Notwithstanding any provision to the contrary, the state board for public accountancy shall conduct all investigations and disciplinary proceedings in accordance with section sixty-five hundred ten of this title.

5. The state board for public accountancy shall assist and advise the board of regents on matters of professional licensing, practice and conduct and make written recommendations to the board of regents on any proposed regulations being considered by the regents pertaining to the profession of public accountancy.

6. The state board for public accountancy shall prepare an annual report which shall be submitted to the governor, the temporary president of the senate, the speaker of the assembly and the board of regents summarizing the activities of the board and recommending changes in law and regulations governing the licensure and practice of public accountancy.

7. The state board for public accountancy or its committee on licensing shall select or prepare examinations, may conduct oral and practical examinations and reexaminations, shall fix passing grades and assist the department in other licensing matters as prescribed by the board of regents.

8. The board shall elect from its members a chairman and vice-chairman annually, shall meet upon call of the chairman or the department, and may adopt bylaws consistent with this title. A quorum for the transaction of business by the board shall be a majority of members.

1. Complaints of professional misconduct by a licensee shall be investigated and prosecuted by the state board for public accountancy in accordance with section sixty-five ten of this title.

2. For purposes of investigations, disciplinary proceedings or hearings conducted by the state board for public accountancy, all references to “the department” in subdivisions one through three and subdivision seven of section sixty-five hundred ten of this title shall be deemed to mean and refer to the state board for public accountancy.

3. Notwithstanding any other provision of law to the contrary, in any investigation under subdivision one of section sixty-five hundred ten of this title, the licensee being investigated shall have the right to be interviewed in order to provide an explanation of the issues under investigation. The licensee may have counsel present during the interview, and shall have the right in advance of such interview to a written statement of the alleged professional misconduct and issues under investigation by the state board for public accountancy. The licensee may submit written comments and expert opinion at any time during the investigation. Providing an opportunity for the interview shall be a condition precedent to any preparation of charges under paragraph c of subdivision one of section sixty-five hundred ten of this title.

4. Notwithstanding any other provision of law to the contrary, a violations committee of the state board for public accountancy under paragraph c of subdivision 2 of section sixty-five hundred ten of this title shall consist of three members of such board, one of whom shall be a public representative.

5. Notwithstanding any other provision of law to the contrary, in any adversary proceeding under subdivision three of section sixty-five hundred ten of this title, the licensee shall have the right in advance of the hearing to examine and copy any report of investigation and documentary or testimonial evidence and summaries of evidence in the state board for public accountancy’s possession relating to the subject matter of the complaint and charges against the licensee. The board may charge a reasonable fee for such copying.

6. The administrative officer assigned to a hearing panel by the state board for public accountancy pursuant to paragraph b of subdivision three of section sixty-five hundred ten of this title shall not be a current employee of the state board for public accountancy or the state education department.

7. Any hearing conducted by the state board for public accountancy pursuant to subdivision two or three of section sixty-five hundred ten of this title shall be commenced within ninety days of the preparation of charges under paragraph c of subdivision one of such section, except that an adjournment of the initial hearing date may be granted by the administrative officer assigned to the hearing panel, upon good cause shown.

8. For any hearing conducted by the state board for public accountancy under subdivision three of section sixty-five hundred ten of this title, the last hearing date must be held within one hundred eighty days of the first hearing date. Either party, for good cause shown, may request that the administrative officer to extend the last day of the hearing beyond one hundred eighty days. The written report of the hearing panel pursuant to paragraph d of subdivision 3 of section sixty-five hundred ten of this title shall be rendered within sixty days of the last hearing date.

9. Notwithstanding any other provision of law to the contrary, the department shall notify the licensee at least thirty days before the meeting of the regents review committee pursuant to paragraph b of subdivision four of section sixty-five hundred ten of this title. The regents review committee shall transmit a written report of its review to the board of regents under paragraph b of subdivision four of such section within sixty days of the conclusion of the meeting of the regents review committee.

10. With respect to any hearing conducted by the state board for public accountancy under section sixty-five hundred ten of this title, the regents shall render a decision and order under paragraph c of subdivision four of such section within sixty days of its receipt of the written report of the regents review committee.

11. Time limitations: Failure to comply with a provision of this subdivision requiring that a specified action shall be taken within a specified period of time shall be grounds for a proceeding pursuant to article seventy-eight of the civil practice law and rules for an order staying the hearing or dismissing the charges or any part thereof or any other appropriate relief. Such proceeding shall be returnable before the supreme court of Albany county. The respondent in such proceeding shall have the initial burden to explain the reasons for the failure to comply with a provision requiring that a specified action to be taken within a specified period of time. The court shall not stay the hearing or dismiss the charges or grant any other relief unless it determines that the failure to comply was not caused by the article seventy-eight petitioner and has caused substantial prejudice to the article seventy-eight petitioner.

1. To qualify for a license as a certified public accountant, an applicant shall fulfill the following requirements:

(1) Application: file an application with the department;

(2) Education: have received an education, including a bachelor’s or higher degree based on a program in accountancy, in accordance with the commissioner’s regulations;

(3) Experience: have experience satisfactory to the board and in accordance with the commissioner’s regulations in providing accounting, attest, auditing, or tax preparation or tax advisory services. The experience may include employment in the practice of public accountancy or such equivalent experience as determined by the state board for public accountancy and shall be supervised and verified by a Certified Public Accountant or Public Accountant in good standing licensed in this state.

(4) Examination: pass a written examination satisfactory to the board and in accordance with the commissioner’s regulations and the requirement with respect to such examination may not be waived.

(5) Age: be at least twenty-one years of age;

(6) Citizenship: meet no requirements as to United States citizenship;

(7) Character: be of good moral character as determined by the department; and

(8) Fees: pay a fee of two hundred twenty dollars to the department for admission to a department conducted examination and for an initial license, a fee of one hundred fifteen dollars for each reexamination, a fee of one hundred thirty-five dollars for an initial license for persons not requiring admission to a department conducted examination, and a fee of two hundred ten dollars for each triennial registration period.

2. In lieu of professional requirements specified in subparagraph (2) and (3) of subdivision one of this section, fifteen years in the practice of public accountancy satisfactory to the board may be accepted by the department.

1. Limited Permits. On recommendation of the board, the department may issue a limited permit to an applicant of good moral character who is the holder of a certificate, license or degree in a foreign country constituting a recognized qualification for the performance in such country of the acts set forth in section seventy-four hundred one of this article, provided the applicant has professional qualifications satisfactory to the board, the applicant resides or has a place for the regular transaction of business within the state, and equal recognition is granted by the foreign country concerned to certified public accountants and public accountants licensed in this state. Such limited permit shall be valid for a period of two years and may be renewed on recommendation of the board. Such permit shall authorize the applicant to use only the title or designation under which he is generally known in his or her own country, followed by the name of the country from which he or she received his or her certificate, license or degree, notwithstanding the provisions of subdivision [two] four of section seventy-four hundred eight of this article.

2. Requirements for Temporary Practice.

(a) A certified public accountant, licensed by another state or other jurisdiction of the United States and in good standing, may temporarily practice public accountancy in this state, if the certified public accountant:

(1) Holds a valid license to practice public accountancy in the other state or jurisdiction.
(2) Concurrently practices public accountancy in the other state or jurisdiction.
(3) Obtains from the state board for public accountancy a temporary practice permit prior to performing the temporary work specifying the dates within the calendar year when such right to practice may be exercised.

(b) The temporary practice permit allows a certified public accountant, who meets the requirements of subsection (a) to work for not more than 60 days in this state during any calendar year.

3. Applications for temporary practice permits shall be processed by the department within a reasonable period of time.

4. Failure to meet requirements for temporary practice permit. A person who wishes to practice public accountancy in this state but does not meet the requirements of subsection (a) is subject to the full licensing and registration requirements of this article.

5. Notwithstanding any provision to the contrary, a certified public accountant who obtains a temporary practice permit under this section and files an application for full licensing under section 7404 of this article on or before the termination date of such temporary practice permit may continue to practice under such permit for a period coterminous with the period during which his or her application for licensure remains pending with department.

6. Fees. The fee for each limited permit and temporary practice permit and each renewal shall be [one hundred five dollars] established in regulation by the board of regents.

[a.] 1. Any person other than a certified public accountant who is an officer of a corporation or partner of a partnership or sole proprietor of a business enterprise or a member of a joint venture or member of a committee appointed by stockholders, creditors, courts, trustees, executors or administrators, or an employee of any of the foregoing, in his or her capacity as such, from signing, delivering, or issuing any financial, accounting or related statement or report thereon, relating to said corporation, partnership, business venture, joint venture, committee, trust or estate, provided, however, that in so doing such person does not hold himself or herself out to be a certified public accountant or public accountant;

[b.] 2. An attorney-at-law or firm of attorneys-at-law from signing a financial, accounting or related statement or report thereon, prepared by [him or them] the attorney-at-law or firm of attorneys-at-law as incidental to the practice of law;

[c.] 3. Any individual from serving as an employee of a certified public accountant, public accountant or [partnership licensed under this article] any firm registered pursuant to section seventy-four hundred eight of this article;

[d.] 4. Any individual, not engaged in practice as a certified public accountant or public accountant within the state, from performing services within the state which are incidental to the practice conducted by him outside the state;

[e.] 5. Any official or employee of a governmental unit, agency or instrumentality in the performance of his or her official duties from signing, delivering or issuing any financial, accounting, or related statement or report thereon relating to said unit, agency or instrumentality; or

[f.] 6. A corporation chartered in the state of New York to engage in the practice of public accountancy and so engaged as its principal activity on and before the first day of July, nineteen hundred fifty-nine, from continuing in such practice as long as its corporate acts comply with the board of regents rules, provided all employees of such corporation performing any acts constituting the practice of public accountancy as defined herein and who are not certified public accountants or public accountants licensed under this article shall in the performance of such acts be under the supervision of certified public accountants or public accountants licensed in this state.

1. Nothing contained in this article shall be deemed to prohibit two or more certified public accountants or two or more public accountants, or any combination thereof, from forming a [partnership] firm; provided, however, that no [partnership] firm shall use the words "certified public accountant" or "certified public accountants" or the letters ["C.P.A.`s"] "CPA" or "CPAs" in connection with its name unless the sole proprietor or each partner, member or shareholder of such [partnership] firm, resident or engaged within the United States in practice is in good standing as a certified public accountant of one or more of the states or political subdivisions of the United States, and the sole proprietor or each partner, member or shareholder thereof resident or engaged in practice within the state is licensed under this article. a. A registration shall be issued to a [partnership] firm upon payment of the fee prescribed by the commissioner upon application showing that: (1) At least one partner, member or shareholder of such [partnership] firm or the sole proprietor is licensed under this article and his or her license to practice is not currently suspended, annulled or revoked in any jurisdiction and he or she is regularly engaged in practice on behalf of the partnership within the state; (2) The [partnership] firm other than a sole proprietorship consists of at least two present partners, members or shareholders; and (3) The [partnership] firm other than a sole proprietorship contains at least as many present partners, members or shareholders as the total number of names in the firm name, or, where the word "company" or abbreviation "co." is used, the number of present partners, members or shareholders shall be greater than the number of names in the firm name. b. Such registration may be revoked or other disciplinary action against the firm may be taken by the board of regents after a hearing conducted by the state board for public accountancy in accordance with the provisions of section sixty-five hundred ten of this title upon proof : (1) That the registration was obtained by either misrepresentation or suppression of any material fact; (2) That the license or authorization to practice of any partner, sole proprietor, member or shareholder is suspended, annulled or revoked in any jurisdiction; (3) That any partner, sole proprietor, member of shareholder in such a [partnership] firm is or has been engaged in the practice of public accountancy in this state who is not licensed in this state; [or] (4) That the [partnership] firm failed to file the written notification required pursuant to paragraph d of this subdivision of this section; (5) that the firm has willfully failed to cooperate in a substantial or material respect with the investigation by the state board for public accountancy of any licensee who is a partner, sole proprietor, member, shareholder, principal or employee of the firm; or (6) that the firm failed to undergo a review of its practice of public accountancy pursuant to section seventy-four hundred ten of this article at least once every three years. c. Personal service on any general partner, member, shareholder or sole proprietor of a notice of hearing to revoke a [partnership] firm registered hereunder shall be deemed service on the [partnership] firm. d. A [partnership] firm registered to practice pursuant to this section shall file with the department on or before July first of each year written notification of: (1) Any admission of a partner, member or shareholder, (2) Any resignation retirement or death of a partner, member or shareholder, (3) Any termination of firm, or (4) Any occurrence of any event or events which would eliminate as to such [partnership] firm conformity with the applicable requirements of this section. e. [Partnerships] Firms shall register triennially and pay a fee of fifty dollars.

2. No firm shall hold itself out to the public, in consideration of compensation received or to be received, for the practice of public accountancy as defined in section seventy-four hundred one of this article in this state or use the title "CPA" or "CPA firm" or "PA" or "PA firm" without a registration from the department. As a condition of registration or its renewal, the firm shall demonstrate that it has complied with the provisions of this article, any other applicable laws and such other requirements as the department may impose, consistent with this article.

3. For purposes of this subdivision, the term "member" means a person who has been admitted as a member of a professional service limited liability company in accordance with the terms and provisions of the limited liability company law and the operating agreement of such professional service limited liability company, and has a membership interest in such limited liability company with the rights, obligations preferences and limitations specified under the limited liability company law and such operating agreement.

1. {(a)} A. Each licensed certified public accountant and public accountant required under article one hundred thirty of this chapter to register triennially with the department to practice in the state shall comply with the provisions of the mandatory continuing education requirements except as set forth in [(paragraphs (b) and (c)] Paragraph B of this subdivision. Certified public accountants and public accountants who do not satisfy the mandatory continuing education requirements shall not practice until they have met such requirements, they have paid all applicable fees, and they have been issued a registration or conditional registration certificate.

{(b)} B. Certified public accountants and public accountants shall be exempt from the mandatory continuing education requirement for the triennial registration period during which they are first licensed. In accordance with the intent of this section, adjustments to the mandatory continuing education requirement may be granted by the department for reasons of health certified by a physician, for extended active duty with armed forces of the United States, or for other good cause acceptable to the department which may prevent compliance.

[(c) A licensed certified public accountant and a public accountant not engaged in public practice as an individual practitioner, a partner of a partnership, a shareholder of a professional service corporation, or an employee of such practice units, shall be exempt from the mandatory continuing education requirement and payment of the mandatory continuing education fee upon the filing of a statement with the department declaring such status. Any licensee who returns to the public practice of certified public accountancy or public accountancy during the triennial registration period shall notify the department prior to reentering the profession and shall pay the current mandatory continuing education fee and shall meet such mandatory continuing education requirements as shall be prescribed by regulations of the commissioner.]

2. A. During each year of the triennial registration period beginning September first, nineteen hundred ninety and ending September first, nineteen hundred ninety-three and each registration period thereafter but ending on the period that ends on december thirty-first, two thousand three, an applicant for registration shall have the option of [a] (1) completing a minimum of forty contact hours of acceptable formal continuing education in recognized areas of study, or [b] (2) completing a minimum of twenty-four contact hours of acceptable formal continuing education concentrated in any one of the following three subject areas: auditing, accounting, or taxation.

B. During the triennial registration period beginning january first, two thousand four and ending december thirty-first, two thousand six and each registration period thereafter, an applicant for registration shall complete no less than one hundred twenty hours of acceptable formal continuing education in recognized areas of study, with a minimum of twenty hours in each year.

C. A licensee who has not satisfied the mandatory continuing education requirements shall not be issued a triennial registration certificate by the department and shall not practice unless and until a conditional registration certificate is issued as provided in subdivision three of this section. No hourly credits may be transferred from one year to a subsequent year. The individual licensee shall determine the selection of courses or programs of study pursuant to subdivision four of this section.

3. The department, in its discretion, may issue a conditional registration to a licensee who fails to meet the continuing education requirements established in subdivision two of this section but who agrees to make up any deficiencies and take any additional education which the department may require. The fee for such a conditional registration shall be the same as, and in addition to, the fee for the triennial registration. The duration of such conditional registration shall be determined by the department. Any licensee who is notified of the denial of registration for failure to submit evidence, satisfactory to the department, of required continuing education and who practices public accountancy without such registration, may be subject to disciplinary proceedings pursuant to section [six thousand five] sixty-five hundred ten of this [chapter] title.

4. As used in subdivision two of this section, "acceptable formal continuing education" shall mean formal programs of learning which contribute to [professional practice and which meet the standards prescribed by regulations of the commissioner] the growth in the professional knowledge and professional competence of the licensee. Recognized areas of study shall include but not be limited to: accounting, auditing, taxation, advisory services, specialized knowledge and applications related to specialized industries, and such other [technical] areas appropriately related to the practice of accounting as may be acceptable to the department. To fulfill the mandatory continuing education requirement, programs must be taken from sponsors approved by the department, pursuant to the regulations of the commissioner.

5. The mandatory continuing education fee shall be determined by the regents, shall be payable on or before the first day of each triennial registration period, and shall be paid in addition to the triennial registration fee required by section {seven thousand four} seventy-four hundred four of this article.

1. A. As a condition of initial registration, the department may require a firm to undergo a peer review of its attest and compilation services, except that any such firm which within three years immediately preceding the application has received a satisfactory peer review conducted in accordance with a peer review program approved by the department, may submit a copy of the reviewer’s report for the purposes of meeting this condition.

B. As a condition for renewing the registration of a certified public accountancy firm registered in this state, the department shall require the firm to undergo a peer review of its attest and compilation services at least once every three years in accordance with this section. The peer review shall be conducted by a reviewer selected by the firm to be reviewed from a roster of qualified peer reviewers appointed by recognized statewide or national professional accounting organizations approved by the department. Peer reviewers shall be certified public accountants in good standing, be independent of the firm reviewed, and possess such other qualifications as established by the department. The department may authorize a recognized statewide or national professional accounting organization, or other appropriate third party, to administer the peer review program. The results of peer reviews shall be filed with the department. Failure to participate in the peer review shall constitute immediate grounds for revocation of the registration of the firm.

2. A certified public accountancy firm shall undergo a peer review pursuant to standards and procedures approved by the board to determine, verify and report:

A. On the degree of compliance of the firm in performing under generally accepted auditing standards, and other similarly recognized technical standards, and

B. On the competence of those licensed individuals in the firm who supervise attest and compilation services and sign or authorize any individual in the firm to sign reports of financial statements on behalf of the firm.

3. The results and findings of peer reviews or equivalent inspections of firms conducted in accordance with peer review or inspection requirements of the Securities Exchange Commission, the Public Company Accounting Oversight Board, or federal General Accounting Office shall be deemed to comply with mandatory peer review of certified public accountancy firms pursuant to this section.

A. Selecting and training, if necessary, qualified reviewers;

B. Developing criteria for assignment of reviewers to specific peer reviews;

C. Ensuring the independence and impartiality of the reviewer;

D. Evaluating the findings of the reviewer by an oversight committee or board, which may affirm, affirm in part, reverse, reverse in part or remand the findings of the reviewer;

E. Sanctioning firms or licensed individuals who are not in compliance with applicable professional standards and practice, including referring the matter to the state board for public accountancy for appropriate disciplinary action;

F. Developing grounds for exemption from the requirement to undergo a peer review; and

G. Ensuring that all records and files relating to a peer review are confidential except as provided in subdivision 5 of this section.

4. The standards of peer reviews promulgated by the department shall also include criteria for assessment of peer reviews by a peer review oversight committee chosen from a roster of qualified individuals appointed by the board of regents. Nominations of persons to the roster shall be submitted from the state professional association or society or statewide specialty societies approved by the department. The oversight committee shall be authorized to refer appropriate peer reviews to the state board for public accountancy for disciplinary action.

5. Notwithstanding any provision of law to the contrary, the records submitted by a certified public accountancy firm in accordance with this section and the comments of reviewers, of the oversight committee or of the board on reports submitted by a certified public accountancy firm or working papers relating thereto shall be confidential, provided however a summary of the results of the peer review shall constitute public records and shall be subject to disclosure under article seven of the public officers law.

a. Notwithstanding any provisions of law to the contrary, a certified public accountant or public accountant licensed or otherwise authorized to practice under this article or such certified public accountant’s or public accountant’s firm shall not accept nor be paid a commission or referral fee from or for any client for whom the certified public accountant, public accountant or firm is engaged to perform attest services or a compilation of a financial statement in which the compilation report does not disclose a lack of independence. This prohibition applies during the period in which the licensee or firm is engaged to perform the services identified in this subdivision and the period covered by any historical financial statements or prospective financial information involved in such services.

b. Any certified public accountant, public accountant or firm that is paid or expects to be paid a commission, or accepts a referral fee shall provide written disclosure to the client of such payment or acceptance.

1. There is hereby established in the custody of the comptroller, a special fund to be known as the "New York State board for public accountancy account".

2. The account shall consist of all revenues received from fees collected by the department of education from licensed certified public accountants and public accountants for registration under section 6502 of the education law and from fees collected by the department of education from firms for registration under section 7408 of the education law, all moneys transferred to such account pursuant to law and all moneys required by the provisions of this section or any other law to be paid into or credited to such account, including all moneys received by the account or donated to it. Moneys in the account shall be kept separate and shall not be commingled with any other moneys otherwise appropriated or received except as hereby provided.

3. Moneys of the account, when allocated, shall be available to the state board for public accountancy to carry out the purposes of articles 149 of the education law.

4. The legislature shall annually appropriate from the remaining available moneys, funding for the state board for public accountancy to carry out the purposes of article 149 of the education law. At the end of any fiscal year, any funds not encumbered for these purposes shall be reallocated for the costs of carrying out the purposes of article 149 by the state board for public accountancy.

5. Nothing contained herein shall prevent the state board for public accountancy or the comptroller from receiving grants, gifts or bequests for the purposes of the fund as defined in this section and depositing them into the account according to law.