§ 7410. Mandatory peer review. 1. The department shall require as a
condition to renewal of registrations under section seventy-four hundred
eight of this article, that unless otherwise exempted by the department,
applicants for firm registrations, undergo, no more frequently than once
every three years, except pursuant to a disciplinary action brought
under section seventy-four hundred eight of this article, peer reviews
of the firm's attest services conducted in such manner as the
commissioner shall specify in regulations, and such review shall include
a verification that individuals in the firm who are responsible for
supervising attest services sign or authorize someone to sign the
accountant's report on the financial statements on behalf of the firm
meet the competency requirements set out in the professional standards
for such services, provided that any such regulations:

a. shall include reasonable provisions for compliance by an applicant
for firm registration showing that it has, within the preceding three
years, undergone a peer review in this state or a peer review in another
state that is a satisfactory equivalent to peer review required pursuant
to this section;

b. shall require, with respect to any organization administering peer
review programs contemplated by paragraph a of this subdivision, that it
be subject to evaluations by the department or its designee, to
periodically assess the effectiveness of the peer review program under
its charge;

c. shall require the peer review to be conducted by reviewers
acceptable to the department in accordance with the commissioner's
regulations; and

d. may require with respect to peer reviews contemplated by paragraph
a of this subdivision that firms undergoing peer reviews and
organizations administering peer review programs timely remit such peer
review reports to the state board for public accountancy and such
reports shall be maintained by the board in a manner consistent with
subdivision two of this section.

2. Notwithstanding any provision of law to the contrary, the reports
submitted in accordance with subdivision one of this section shall be
confidential and shall not constitute a public record and shall not be
subject to disclosure under articles six and six-A of the public
officers law. However, when any such report is admitted into evidence in
a hearing held by the department, it shall then be a public record
subject to disclosure under articles six and six-A of the public
officers law.

3. Notwithstanding any provision of law or regulation to the contrary,
a firm that performs attest services for any New York state or municipal
department, board, bureau, division, commission, committee, public
authority, public corporation, council, office, or other governmental
entity performing a governmental or proprietary function for New York
state or any one or more municipalities thereof, or performs attest
services specifically required to be performed pursuant to New York
state law, or performs attest services for any federal governmental
entity pursuant to federal law, shall be in conformity with the
requirements pursuant to the government auditing standards of the
comptroller general of the United States.