HOUSE FILE 2124

BY  COMMITTEE ON STATE GOVERNMENT

(SUCCESSOR TO HSB 522)

A BILL FOR

An Act exempting review services from specified requirements otherwise applicable to the performance of attest services by out-of-state certified public accounting firms.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 542.20, subsection 5, paragraph a, Code 2011, is amended to read as follows:
   a.  The firm shall not perform attest services, other than review services, in Iowa or for a client having a home office in Iowa.
    Sec. 2.  Section 542.20, subsection 5, paragraph c, Code 2011, is amended to read as follows:
   c.  The firm may perform compilation
 
or review services only if it complies with the ownership and peer review requirements of section 542.7.
    Sec. 3.  Section 542.20, subsection 6, paragraph c, Code 2011, is amended to read as follows:
   c.  An individual who provides attest services, other than review services, in Iowa or for a client having a home office in Iowa must practice through a certified public accounting firm that is licensed under section 542.7.
    Sec. 4.  Section 542.20, subsection 6, Code 2011, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  h.  An individual who provides reviews of financial statements, as provided in section 542.3, subsection 1, in Iowa or for a client having a home office in Iowa must provide such services through a certified public accounting firm that is validly licensed in the state of its principal place of business and complies with the peer review and ownership provisions of section 542.7.
EXPLANATION
   This bill exempts review services performed by out-of-state certified public accounting firms from permit to practice requirements otherwise applicable to the performance of attest services by such firms. Review services are included within the definition of “attest services” pursuant to Code section 542.3, subsection 1. The bill requires review services to be provided through a certified public accounting firm that is validly licensed in the state of its principal place of business and subjects the performance of such services to ownership and peer review provisions contained in Code section 542.7.