New York State Accountancy Reform Law

Summary of New Rules for CPA's Issuing Financial Statements for 2023

• NEW Peer Review Rule - The NYS Legislature enacted a NEW rule, effective October 31, 2017, requiring all CPAs to undergo a Peer Review if they prepare any attest function. Attest is defined as either:
  • Reviews
  • Audits
  • Agreed Upon Procedures
  • Attestation (e.g., Governmental items as NYC RE).
  No more exemptions for small firms with 2 or fewer members! If you were exempt under the old rules, then you must inform the NYS Public Accountancy Board (either by email or written letter) within 30 days of accepting a new attest engagement that you will be subject to a Peer Review. You will then have 18 months to complete a Peer Review. For more information, call Prof. Blumenfrucht at (718) 544-1929.                                         
  NOTE: Those who do ONLY Compilations & Taxes are exempt. 

• Firms issuing only compilations are exempt from peer review, but not from the 40 CPE requirements in A&A.

• Every CPA who prepares Compilations, Review, or Audited Statements, must complete 40 CPE credits in Accounting & Auditing over "every" three year period. 

• The 3 year period, according to the NYS Rules of Board of Regents governing Public Accountancy (Part 29), requires CPA's who perform audits, reviews or compilations to "have completed at least 40 hours of continuing education in the areas of accounting, auditing, or attest during the prior three calendar years or in the calendar year in which the service is performed". Thus, those issuing financial statements in 2023 must have earned 40 CPE credits in A&A in the prior 3 year period of 2020-2022 or all 40 CPE credits by December 31, 2023. Note that the 3 year period is mandated for "EVERY" year.