STAND. COM. REP. NO. 602

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 609

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

 

Sir:

 

     Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 609 entitled:

 

"A BILL FOR AN ACT RELATING TO ATTESTATION ENGAGEMENTS,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to require that peer reviews performed on public accounting firms are performed in accordance with the entirety of the Statements on Standards for Attestation Engagements adopted by the American Institute of Certified Public Accountants.

 

     Your Committee received testimony in support of this measure from the Board of Public Accountancy.

 

     Your Committee finds that the Board of Public Accountancy's Peer Review Program encompasses the framework and implementation guidelines of the peer review program of the American Institution of Certified Public Accountants (AICPA).  The Board has adopted the Statements on Standards for Attestation Engagements of the AICPA (AICPA Standards) as the benchmark for the evaluation and peer review of the provision of attestation services by Certified Public Accountants and Certified Public Accountant firms and requires all licensees under its jurisdiction to adhere to these AICPA Standards when performing engagements that require the provision of attestation services.

 

     This measure deletes the specific reference to AT section 201 of the AICPA Standards to instead require that peer review procedures be subject to all of the AICPA Standards, which will enable the Board to make references to the pertinent sections of the AICPA Standards as needed.

 

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 609 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Health,

 

 

 

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ROSALYN H. BAKER, Chair