NAC680A.189. Audit of financial statements; adoption by reference of standards.

     1. The insurer’s financial statements must be examined by an independent certified public accountant for the purposes of NRS 680A.265 and the regulations adopted pursuant thereto. The audit of the insurer’s financial statements must be conducted in accordance with generally accepted auditing standards. In accordance with AU Section 319, Consideration of Internal Control in a Financial Statement Audit, included in the AICPA Professional Standards, as adopted by reference in subsection 2, the independent certified public accountant must obtain an understanding of the insurer’s internal control sufficient to plan the audit. If required by AU Section 319, for those insurers required to file a Management’s Report on Internal Control Over Financial Reporting pursuant to NAC 680A.203, the independent certified public accountant shall consider the most recently available report in planning and performing the audit of the financial statements. Consideration should be given to the procedures set forth in the Financial Condition Examiners Handbook, adopted by reference in NAC 679B.033, as the independent certified public accountant deems necessary.

     2. The AICPA Professional Standards are hereby adopted by reference and may be obtained by mail from the American Institute of Certified Public Accountants, Member Service Center, Order Processing, 220 Leigh Farm Road, Durham, North Carolina 27707-8110 or by ordering via telephone at [phone], by facsimile at [phone] or on the Internet at http://www.cpa2biz.com at the price of $135 for members of the American Institute of Certified Public Accountants and $168.75 for nonmembers.

     (Added to NAC by Comm’r of Insurance by R205-08, 11-25-2009, eff. 1-1-2010)