In the event the Auditing Committee utilizes a certified public accountant or qualified individual, in all cases the Auditing Committee must contract the engagement directly. The qualified individual must sign an engagement letter and the Auditing Committee must acknowledge it therein prior to the commencement of the engagement. At a minimum, the letter must specify the terms and conditions of the engagement, the basis of accounting to be used, the rate of compensation to be paid, the target date of delivery of the written audit report, and access to workpapers by the Commissioner. Such engagement letter must be noted in the Auditing Committee minutes and made available to the Division upon request. The auditor shall deliver the audit report directly to the Auditing Committee.
209 CMR 43.07