Senate
Study
Bill
3019
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
STATE
GOVERNMENT
BILL
BY
CHAIRPERSON
DANIELSON)
A
BILL
FOR
An
Act
exempting
review
services
from
specified
requirements
1
otherwise
applicable
to
the
performance
of
attest
services
2
by
out-of-state
certified
public
accounting
firms.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
5147XC
(2)
84
rn/nh
S.F.
_____
Section
1.
Section
542.20,
subsection
5,
paragraph
a,
Code
1
2011,
is
amended
to
read
as
follows:
2
a.
The
firm
shall
not
perform
attest
services
,
other
than
3
review
services,
in
Iowa
or
for
a
client
having
a
home
office
4
in
Iowa.
5
Sec.
2.
Section
542.20,
subsection
5,
paragraph
c,
Code
6
2011,
is
amended
to
read
as
follows:
7
c.
The
firm
may
perform
compilation
or
review
services
only
8
if
it
complies
with
the
ownership
and
peer
review
requirements
9
of
section
542.7
.
10
Sec.
3.
Section
542.20,
subsection
6,
paragraph
c,
Code
11
2011,
is
amended
to
read
as
follows:
12
c.
An
individual
who
provides
attest
services
,
other
than
13
review
services,
in
Iowa
or
for
a
client
having
a
home
office
14
in
Iowa
must
practice
through
a
certified
public
accounting
15
firm
that
is
licensed
under
section
542.7
.
16
Sec.
4.
Section
542.20,
subsection
6,
Code
2011,
is
amended
17
by
adding
the
following
new
paragraph:
18
NEW
PARAGRAPH
.
h.
An
individual
who
provides
reviews
of
19
financial
statements,
as
provided
in
section
542.3,
subsection
20
1,
in
Iowa
or
for
a
client
having
a
home
office
in
Iowa
must
21
provide
such
services
through
a
certified
public
accounting
22
firm
that
is
validly
licensed
in
the
state
of
its
principal
23
place
of
business
and
complies
with
the
peer
review
and
24
ownership
provisions
of
section
542.7.
25
EXPLANATION
26
This
bill
exempts
review
services
performed
by
out-of-state
27
certified
public
accounting
firms
from
permit
to
practice
28
requirements
otherwise
applicable
to
the
performance
of
attest
29
services
by
such
firms.
Review
services
are
included
within
30
the
definition
of
“attest
services”
pursuant
to
Code
section
31
542.3,
subsection
1.
The
bill
requires
review
services
to
32
be
provided
through
a
certified
public
accounting
firm
that
33
is
validly
licensed
in
the
state
of
its
principal
place
of
34
business
and
subjects
the
performance
of
such
services
to
35
-1-
LSB
5147XC
(2)
84
rn/nh
1/
2
S.F.
_____
ownership
and
peer
review
provisions
contained
in
Code
section
1
542.7.
2
-2-
LSB
5147XC
(2)
84
rn/nh
2/
2