STAND. COM. REP. NO.  1077-12

Honolulu, Hawaii

                , 2012

RE:   S.B. No. 2421

      S.D. 1

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Economic Revitalization & Business, to which was referred S.B. No. 2421, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC ACCOUNTANCY,"

begs leave to report as follows:

The purpose of this measure is to establish a peer review process for public accountancy firms that engage in attest work.

The Hawaii Association of Public Accountants and Hawaii Society of Certified Public Accountants testified in support of this measure.  The Board of Public Accountancy and an individual provided comments on this measure.

     Your Committee notes for further clarification that the words "report" or "reports" as used in this measure means one or more reports.

     Your Committee has amended this measure by deleting the contents of this measure and replacing it with the contents of the House companion version of this measure, H.B. No. 2169, H.D. 2 (2012), which also establishes a peer review process for public accounting firms that engage in attest work.

     As affirmed by the record of votes of the members of your Committee on Economic Revitalization & Business that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2421, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2421, S.D. 1, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Economic Revitalization & Business,

____________________________

ANGUS L.K. McKELVEY, Chair