SENATE STATE MANAGEMENT, INVESTMENT AND FINANCIAL INSTITUTIONS COMMITTEE

STATEMENT TO

SENATE, No. 2089

STATE OF NEW JERSEY

DATED: JUNE 12, 1997

      The Senate State Management, Investment and Financial Institutions Committee reports favorably Senate Bill No. 2089.

      This bill, the "Accountancy Act of 1997," is a comprehensive revision of the law regulating the practice of accounting in New Jersey. The bill repeals the "Public Accountancy Act of 1977," P.L.1977, c.144 (C.45:2B-1 et seq.), and all supplements thereto which currently regulate accountants in this State.

      The bill establishes the New Jersey State Board of Accountancy and enumerates the board's powers and duties. In addition, the bill also specifies standards concerning confidential communications, and the proper handling by an accountant of working papers and a client's records. Further, this bill authorizes the board to adopt rules establishing a Quality Enhancement Program for the review of audits, reviews, compilations or other reports issued by firms engaged in the practice of public accountancy in this State to determine whether the reports comply with applicable accounting and auditing standards.