HOUSE OF REPRESENTATIVES	H.B. NO.	2651
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII

A BILL FOR AN ACT

relating to public accountancy.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 466-3, Hawaii Revised Statutes, is amended as follows:

     1.  By adding a new definition to be appropriately inserted and to read:

     ""Hawaii attest work" means attest services provided or attest reports issued by an individual or firm licensed and authorized to practice public accountancy in this State or any other state, to any of the following clients:

(1) An individual who is a resident of this State;

(2) A person, entity, firm, or trust that is domiciled within this State, or whose principal or home office is physically located within this State; or

(3) A subsidiary that has a physical presence in this State, and has a separate, stand-alone financial statement or report issued on that subsidiary."

     2.  By amending the definition of "peer review" to read:

     ""Peer review" means a study, appraisal, or review of one or more aspects of the professional work of a firm that issues attest reports by a person or persons who hold permits or licenses to practice public accountancy under section 466-7 or another jurisdiction and who are not affiliated with the firm being reviewed."

     SECTION 2.  Section 466-35, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  A firm shall include, with the peer review compliance reporting form, the contemporaneous Hawaii supplement to the peer review report pursuant to section 466-36, if:

     (1)  A peer review report from an approved sponsoring organization does not include the selection of a Hawaii office or Hawaii attest engagement;

     (2)  The peer reviewer does not hold permits to practice public accountancy under section 466-7[,] (permits to practice), and is required to have permits to practice under section 466-7, except inspectors for the public company accounting oversight board; or

     (3)  The final report resulting from any inspection by the public company accounting oversight board firm inspection program does not include the firm's Hawaii offices, if any, and Hawaii attest engagements in the scope of the inspection, and the firm is not required to enroll in another peer review program under section 466-34."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Public Accountancy; Hawaii Attest Work; Peer Review

Description:

Defines the term "Hawaii attest work".  Provides clarification to the term "peer review".

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