With unanimous approval by the House of Representatives Committee on Banking and Financial Services on Nov. 9, accountancy reform legislation continues on its path to the Governor’s desk. The MACPA expects the reform measures, which encompass recommendations made by the Michigan State Board of Accountancy (MSBA), to be considered by the entire House of Representatives shortly after the legislature’s Thanksgiving break.

One of the most significant provisions within the reform is the MSBA’s recommendation to require licensed CPA firms and sole practitioners performing attestation engagements (audits, reviews and compilations provided to third-parties) to participate in a peer review program as a qualification for license renewal.

In order to protect the integrity of the CPA profession, as well as those seeking services provided by CPAs, the MSBA has proposed and the MACPA has endorsed moving to mandatory peer review for qualifying firms. Should this reform be approved by state lawmakers and signed by the Governor, the peer review requirement will go into effect beginning in March 2007.

While the details of this new requirement won’t be available until the legislation is signed and the administrative rule-making process is complete (read a Leaders’ Edge article on the rule-making process), the MACPA intends to continue to administer the AICPA’s Peer Review program to meet statutory requirements.

Standards, copycat CPAs, MSBA board make-up, record retention, and firm registration are among other areas addressed by State Board recommendations. The recommendations, the legislation and numerous analyses, FAQs and other resources are available on the advocacy portion of the MACPA’s web site.

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