Chapter 405 Oregon Laws 1999

Session Law

AN ACT

SB 155

Relating to quality review for accountants; creating new provisions; and amending ORS 673.455.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 673.455 is amended to read:

673.455. (1) The State Board of Accountancy shall appoint a Quality Review Oversight Committee. The committee shall advise the board on approval of a quality review program. The board may also approve applications for operation of alternative quality review programs such as programs provided by the American Institute of Certified Public Accountants and the National Society of Public Accountants.

(2) Each certified public accountant and public accountant holding a permit issued under ORS 673.150, either individually or as part of a partnership registered under ORS 673.090 or 673.130, shall participate in a quality review program approved by the board [described in this section. The quality review shall be conducted by the Quality Review Committee appointed by the board or by an alternative quality review program approved by the board under subsection (1) of this section].

(3) A review of the accounting practice of a certified public accountant or public accountant [by an alternative] under a quality review program described in subsection (1) or (2) of this section shall not preclude the [Quality Review Committee, upon order of the board,] board from conducting a review of specified aspects of the accounting practice of the certified public accountant or public accountant. A certified public accountant or public accountant whose accounting practice is reviewed by the [Quality Review Committee] board under this subsection is not required to pay [the fee described in subsection (10) of this section] any fee.

[(4) The members of the committee serve at the pleasure of the board.]

[(5)] (4) [A member] Members of the committee appointed under this section [is] serve at the pleasure of the board and are entitled to compensation and expenses as provided in ORS 292.495.

[(6)] (5) The [committee] board also may review:

(a) Any financial statement or report filed with the state or any political subdivision and prepared by a certified public accountant or public accountant; and

(b) Any procedure, working paper or supporting document relating to the financial statement or report.

[(7)] (6) If the client grants permission or if all information identifying the client has been removed, the [committee] board also may review any financial statement not described in subsection [(6)] (5) of this section and prepared by a certified public accountant or public accountant, or any procedure, working paper or supporting document relating to the financial statement.

[(8)] (7) The failure or refusal by any person who is a licensee, certificate holder, permit holder or registrant to comply with a request for review or explanation, or both, of such financial statement as set forth in this section or to participate in a quality review program constitutes a violation of ORS 673.170 (2)(b).

[(9)] (8) Information, recommendations, findings and reports prepared by or for [the Quality Review Committee, or] members of the board shall be confidential and not subject to public disclosure until the board makes a final administrative determination whether it shall take any of the actions set forth in ORS 673.170 (1). However, nothing in this subsection prohibits access by a person who is a licensee, certificate holder, permit holder or registrant, or the person's attorney to the information, recommendations, findings and reports described in this subsection and relating to the person.

[(10) Any certified public accountant or public accountant holding a permit issued under ORS 673.150, either individually or as part of a partnership registered under ORS 673.090 or 673.130, who participates in a review of the accounting practice of the accountant conducted by the Quality Review Committee under this section shall pay a fee to the board. The board shall set the fee by rule.]

SECTION 2. (1) The amendments to ORS 673.455 by section 1 of this 1999 Act apply to quality review activities occurring on or after the effective date of this 1999 Act. Nothing in this 1999 Act relieves any person of any obligation with respect to a fee, fine, civil penalty or other charge, interest, penalty, forfeiture or other liability, duty or obligation.

(2) Any proceeding, action, prosecution or other business or matter undertaken or commenced before the effective date of this 1999 Act by the State Board of Accountancy with respect to ORS 673.455 (1997 Edition), and still pending on the effective date of this 1999 Act, may be conducted and completed by the State Board of Accountancy in the same manner, under the same terms and conditions and with the same effect as though undertaken, conducted or completed before the effective date of this 1999 Act.

(3) The Quality Review Oversight Committee appointed in ORS 673.455, as amended by section 1 of this 1999 Act, shall be considered to be a continuation of the Quality Review Committee appointed under ORS 673.455 (1997 Edition). Members of the Quality Review Committee appointed under ORS 673.455 (1997 Edition) may continue as members of the Quality Review Oversight Committee appointed under ORS 673.455, as amended by section 1 of this 1999 Act, but shall serve at the pleasure of the State Board of Accountancy, as provided in ORS 673.455 (4), as amended by section 1 of this 1999 Act.

Approved by the Governor June 29, 1999

Filed in the office of Secretary of State June 30, 1999

Effective date October 23, 1999

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