S.D. Admin. R. 20:75:07:09

Current through Register Vol. 51, page 39, September 16, 2024

Section 20:75:07:09 - Conduct of review - Requirements

The peer review must be conducted in accordance with the following requirements:

(1) A review must have an engagement review, report review, or system review as defined in § 20:75:07:01, to ensure that procedures tailored to the size of the firm and the nature of its practice are performed;

(2) The reviewer must select the engagements to be reviewed. Engagements selected for review must provide a reasonable cross section of the firm's accounting and auditing practice with greater emphasis on those engagements in the practice with higher assessed levels of quality review risk. Factors to be considered in assessing peer review risk at the engagement level are size, industry area, level of service, personnel, litigation in industry area, and initial engagement;

(3) The review must be limited to the reviewed firm's quality control system and the accounting and auditing engagements with client year ends dated within the year under review;

(4) The reviewer must use checklists as a basis for performing the review. A separate checklist must be used for system reviews, engagement reviews, and report reviews. The checklists must include questions for the reviewer to answer and must provide sufficient information for the board to determine whether the firm under review complies with the standards and principles in §§ 20:75:05:05 and 20:75:05:06; and

(5) The firm under review must submit to the reviewer the preceding peer review report; the matters for further consideration, if any; the reviewed firm's response to the matters for further consideration, if any; the findings for further consideration, if any; the reviewed firm's response to the findings for further consideration, if any; the final letter of approval; and any board or review committee performance requirements.

S.D. Admin. R. 20:75:07:09

29 SDR 16, effective 8/14/2002; 35 SDR 165, effective 12/22/2008; 36 SDR 216, effective 7/6/2010; 39 SDR 33, effective 9/5/2012; 45 SDR 084, effective 12/31/2019; 45 SDR 084, effective 1/1/2020

General Authority: SDCL 36-20B-12(9).

Law Implemented: SDCL 36-20B-36.

Definitions, § 20:75:07:01.