Section 105.301 - Independence of Statutory Auditor(a) The Commissioner's approval of a statutory auditor and the acceptability of the audit report shall require the independence of the statutory auditor from the commencement of the period of the financial statements being audited until the completion of his audit. The statutory auditor shall comply with all official pronouncements on independence of public accountants by the American Institute of Certified Public Accountants and the Board of Accountancy of the State of California. The statutory auditor will not ordinarily be considered independent if, among other things, he or his partner or the accountant assigned to the audit is: (1) An officer, director, attorney, or employee of the association or a member of the immediate family of an officer, director, attorney, or employee.(2) The beneficial or record owner, directly or indirectly, of guarantee stock of the association.(3) An owner of an interest in any partnership, syndicate, or corporation which directly or indirectly controls the association.(4) A borrower from the association, directly or indirectly, other than (A) on loans wholly secured by the pledge of association shares or investment certificates; or (B) on a loan on the security of his residence.(5) To make entries or postings in the books of accounts or to perform any other operating functions for the association, except such functions for which prior approval was requested and obtained, in writing, from the Commissioner.(6) To receive any special consideration in any transaction with the association or with any of its officers or directors or to have any interest, direct or indirect, financial or otherwise, in any of the association's loans or the security therefor other than the loans described in subparagraph (4), or in any other operating activity or function of the association.(b) The statutory auditor shall disclose to the Commissioner any matters which might bear upon his independence, and shall have any questions on independence resolved before proceeding with the performance of the statutory audit for the association.Cal. Code Regs. Tit. 10, § 105.301
1. Change without regulatory effect renumbering former Section 161 to Section 105.301 (Register 87, No. 14). For prior history, see Register 82, 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 161 to Section 105.301 (Register 87, No. 14). For prior history, see Register 82, No. 21.