Ohio Admin. Code 3775-16-19 - Internal audit

(A) Sports gaming proprietors must maintain one of the following to annually assess compliance with sports gaming law:

(1) A separate internal audit department which is independent of the sports gaming operation and may be the internal audit department of a parent entity of the sports gaming proprietor; or

(2) A contracted third party independent registered certified public accounting firm licensed to practice in this state, whose name and lead audit partner or other person responsible for the engagement are reported to the commission before the start of the engagement.

(B) The internal audit department or contracted third party must audit the sports gaming proprietor's compliance with Chapter 3775. of the Revised Code and the rules adopted thereunder, the house rules, required procedures, and any other applicable rules and regulations, as required by the executive director.

(C) The internal audit department or contracted third party must follow the standards, conventions, and rules governing audits in the United States.

(D) The audit satisfying the requirements of this rule must be performed at least annually with the results documented in an audit report that must be provided to the commission.

(E) Documentation must be maintained to evidence all work performed as it relates to the requirements of this rule, including all instances of noncompliance.

(F) Follow-up observations and examinations must be performed to verify that corrective action has been taken regarding all instances of noncompliance. The verification must be performed within six months following the date of notification.

(G) The commission may require the termination of any audit engagement under this rule due to lack of qualification, independence, or capacity or a finding that the contract or conduct performed thereunder poses a material risk to the integrity of sports gaming in this state. The invalidation process is an action against the sports gaming proprietor that is subject to the hearing procedures and disciplinary actions provided for under rules 3775-1-07 and 3775-1-08 of the Administrative Code, respectively. If an audit engagement contract is terminated, the sports gaming proprietor must enter into a new audit engagement contract to ensure the requirements of this rule are met.

Notes

Ohio Admin. Code 3775-16-19

Effective: 10/15/2022
Five Year Review (FYR) Dates: 10/15/2027
Promulgated Under: 119.03
Statutory Authority: 3775.02
Rule Amplifies: 3775.10