Brief ⁽¹⁾

HB 2343 amends the law governing certified public accountants (CPAs) regarding peer review of CPA firms. The bill would add specific disciplinary actions that may be taken by the Board of Accountancy against individuals and firms in connection with the results of a peer review.

The bill includes the following provisions:

• Defines when peer review reports are deemed unsatisfactory by the Board of Accountancy and sets out the disciplinary action the Board may take against the affected firms;
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• Allows for actions limiting the scope of practice of a firm or practitioner or take remedial action deemed necessary to protect the public interest;
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• Among other actions, the Board may assess an administrative fine of up to $2,000; and
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• Allows for closed hearings for discussion of the results of a peer review and establish confidentiality of certain documents.

Background

A conferee representing the Kansas Society of Certified Public Accountants appeared in support of the bill.

The Senate Committee amendments are technical and clarifying.

The fiscal note indicates that the bill would have no fiscal effect on the Board of Accountancy.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi