SED Issues Proposed Quality Review Regulations

The New York State Education Department has issued the proposed regulations that, if approved, will implement the quality review provisions of the accounting reform law, and would go into effect Jan. 1, 2012. These regulations are now open to public comment. The public has until Sept. 11, 2010 to respond to these proposed regulations.

The accountancy reform law requires that every firm that provides attest services in New York state -- except for most firms with two or fewer accounting professionals on staff -- be registered and receive a quality review every three years. The requirement to be registered and undergo a quality review will also apply to any firm, regardless of size, that performs attest services for any New York state governmental agency, performs a governmental or proprietary function for the state or any of its municipalities or performs “services specifically required to be performed pursuant to New York state law.” In addition, sole proprietorships and firms with two or fewer CPAs on staff may voluntarily undergo a quality review.

To comment on these proposed regulations, e-mail opopr@mail.nysed.gov, or write to: Daniel Dustin, Executive Secretary for Public Accountancy, New York State Education Department, 89 Washington Avenue, 2nd Floor, Albany, New York, 12257.