Section 105.300 - Approval of Statutory Auditor(a) The statutory auditor must be approved by the Commissioner prior to the commencement of the statutory audit. To be eligible for approval, the statutory auditor must be a certified public accountant or public accountant who is licensed by and in good standing with the Board of Accountancy of the State of California.(b) Each association seeking the approval of the Commissioner for a statutory auditor shall first submit an application in letter form which contains the following basic information: (1) The name and address of the proposed statutory auditor.(2) The period to be covered by the proposed statutory audit. This period must be at least the entire interval of time since the date of the last approved audit.(3) A statement, in reasonable detail, of all major services other than the statutory audit which the association intends to request its statutory auditor to perform during the period of his appointment. If the statutory auditor is being reappointed, the statement shall also refer to the letter requesting approval for the prior audit period and shall describe any additional major services performed thereafter by the statutory auditor.(4) A certified copy of the resolution of the board of directors: (A) authorizing the engagement of the statutory auditor to perform the statutory audit,(B) authorizing the statutory auditor to perform such specific procedures, to review such additional information, and to prepare such supplemental reports which may be requested by the Commissioner,(C) authorizing the statutory auditor to make available his working papers to representatives of the Commissioner's office if requested, and(D) authorizing the statutory auditor to consult with representatives of the Commissioner's office regarding the audit and regarding any reports or other information on file in the Commissioner's office concerning the condition and affairs of the association.(c) The Commissioner will not ordinarily approve a statutory auditor until the audited financial statements, the letter report and any supplemental report pertaining to the prior audit period have been filed and such statements and reports comply with the requirements of this Subchapter and all special instructions of the Commissioner.(d) Notice of disapproval of the proposed statutory auditor by the Commissioner shall be in writing containing the reasons therefor and shall be mailed to the association and the proposed statutory auditor. An application for reconsideration may be filed with the Commissioner by the association or the proposed statutory auditor within 15 days after the mailing of the notice of disapproval by the Commissioner.Cal. Code Regs. Tit. 10, § 105.300
1. Change without regulatory effect renumbering former Section 160 to Section 105.300 (Register 87, No. 14). For prior history, see Register 81, No. 21. Note: Authority cited: Section 5255, Financial Code. Reference: Sections 8750, 8751 and 8752, Financial Code.
1. Change without regulatory effect renumbering former Section 160 to Section 105.300 (Register 87, No. 14). For prior history, see Register 81, No. 21.