may, by rule promulgated pursuant to chapter 1-26, require, on either a uniform or a random basis, as a condition of renewal of firm permits pursuant to this chapter, that an applicant undergo peer review conducted in such manner and producing such satisfactory result as the board may specify. However, any such requirement shall include reasonable provision for compliance by means of an applicant furnishing evidence of a satisfactory peer review performed for other purposes. Such review shall include a verification that individuals in the firm who are responsible for supervising attest and compilation services and who 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. Any rule promulgated pursuant to this section shall: (1) Include reasonable provision for compliance by an applicant showing that it has, within the preceding three years, undergone a peer review that is a satisfactory equivalent to peer review generally required pursuant to this section; (2) Require, with respect to a peer review contemplated by subdivision (1), that it be subject to oversight by an oversight body established or sanctioned by board rule, promulgated pursuant to chapter 1-26, which body shall periodically report to the board on the effectiveness of the review program under its charge, and provide to the board a listing of firms that have participated in a peer review program that is satisfactory to the board; and (3) Require, with respect to peer review contemplated by subdivision (1), that any peer review process be operated and any documents maintained in a manner designed to preserve confidentiality, and that neither the board nor any third party, other than the oversight body, may have access to documents furnished or generated in the course of the review. Pursuant to the peer review process, the board shall treat the reports of the reviewer and any records submitted to the reviewer by the firm subject to review as confidential information. The board may not disclose such information to any persons other than staff members, legal counsel, and other persons retained by the board to assist it in fulfilling its responsibilities under this chapter and the rules, promulgated by the board pursuant to chapter 1-26.
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