760 Ind. Admin. Code 1-78-12

Current through December 12, 2024

Section 760 IAC 1-78-12 - Definition, availability, and maintenance of independent certified public accountants' work papers

Authority: IC 27-1-3-7

Affected: IC 27-1-3.1; IC 27-1-3.5

Sec. 12.

(a) As used in this section, "work papers" means the:

(1) records kept by the independent certified public accountant of the procedures followed;

(2) tests performed;

(3) information obtained; and

(4) conclusions reached; pertinent to the accountant's audit of the financial statements of an insurer.

(b) Work papers may include:

(1) audit planning documentation;

(2) work programs;

(3) analyses;

(4) memoranda;

(5) letters of confirmation and representation;

(6) abstracts of company documents; and

(7) schedules or commentaries; prepared or obtained by the independent certified public accountant in the course of the accountant's audit of the financial statements of an insurer and that support the accountant's opinion.

(c) Every insurer required to file an audited financial report under this rule shall require the accountant to make the following available for review by department examiners:

(1) All work papers prepared in the conduct of the accountant's audit.

(2) Any communications related to the audit between the accountant and the insurer at:

(A) the offices of the insurer;

(B) the department; or

(C) any other reasonable place designated by the commissioner.

The insurer shall require that the accountant retain the audit work papers and communications until the department has filed a report on examination covering the period of the audit but not longer than seven (7) years from the date of the audit report.

(d) In the conduct of the periodic review by the department examiners described in subsection (c), it shall be agreed that photocopies of pertinent audit work papers may be made and retained by the department. The reviews by the department examiners shall be considered investigations, and all working papers and communications obtained during the course of the investigations shall be afforded the same confidentiality as other examination work papers generated by the department under IC 27-1-3.1.

760 IAC 1-78-12

Department of Insurance; 760 IAC 1-78-12; filed Oct 27, 2009, 2:52 p.m.: 20091125-IR-760090376FRA

Readopted filed 11/20/2015, 9:25 a.m.: 20151216-IR-760150341RFA

Readopted filed 11/15/2021, 8:32 a.m.: 20211215-IR-760210419RFA