32-10-302. Annual audit. (1) (a) Within 180 days of the end of a licensee's fiscal year, the licensee shall have the licensee's books and accounts audited by an independent certified public accountant and have the audit report filed with the department. The department may accept the audit of a parent company of the licensee in lieu of an audit of the licensee if the department determines that the parent company's audit is sufficient for the department's purposes.
     (b) The audit must be sufficiently comprehensive in scope to permit the expression of an opinion on the financial statements.
     (c) The audit must be prepared in accordance with generally accepted accounting principles and must be performed in accordance with generally accepted auditing standards.
     (d) The audit report must be certified by the certified public accountant conducting the audit.
     (2) As used in this section, the term "expression of an opinion" includes either:
     (a) an unqualified opinion;
     (b) a qualified opinion;
     (c) a disclaimer of opinion; or
     (d) an adverse opinion.
     (3) If a qualified or adverse opinion is expressed or if an opinion is disclaimed, the reasons must be fully explained. An opinion qualified in its scope is not acceptable.
     (4) If a licensee fails to obtain an audit as required, the department may obtain an audit by an independent certified public accountant at the licensee's expense. The department may select an independent certified public accountant by advertising for bids or by other fair and impartial means as the department establishes by rule if allowed by law.
     (5) Audits conducted in accordance with the Consolidated Audit Guide for Audits of HUD Programs may be accepted to fulfill the requirements of this section.
     (6) The department may establish by rule additional requirements for annual audits.

     History: En. Sec. 12, Ch. 369, L. 2007.