Current through Register Vol. 60, No. 12, December 1, 2021
Annual audited financial statements shall report the financial position of the
CCO as of the end of the most recent calendar year and the results of its
operations, cash flows and changes in capital and surplus for the year then
ended in accordance with the form and content requirements of OAR
The audit of the
CCO's annual financial statements shall be performed by an independent
accounting firm and shall include, but not limited to:
(a) A report of the independent accounting
firm that meets the requirements of this section.
(b) A written statement of opinion by the
independent accounting firm based on the firm's audit regarding the CCO's
annual financial statements.
written statement of opinion by an independent actuarial firm with respect to
the assumptions and methods used in determining the CCO's loss reserves,
actuarial liabilities and related items, and the consistency of those
assumptions and methods with generally accepted actuarial standards and
practices for such matters.
Each CCO required to file an annual
audited financial report must register with the Authority in writing the name
and address of the independent certified public accountant or accounting firm
retained to conduct the annual audit. A CCO shall register under this rule on
or before the later of sixty (60) days following:
(a) The effective date of this section,
(b) The date on which the CCO
first becomes subject to this section.
(4) A CCO shall obtain a letter from the
accountant retained by the CCO stating that the accountant is aware of the
provisions of these rules that relate to CCO accounting and financial matters
and affirming that the accountant will express the opinion of the accountant on
the financial statements in terms of their conformity with the Statutory
Accounting Principles, specifying exceptions that the accountant believes
appropriate. The CCO shall file a copy of the letter with the
If the accountant
who was the certified public accountant for the immediately preceding filed
audited financial report is dismissed or resigns, the CCO shall so notify the
Authority not later than the fifth business day after the dismissal or
resignation. The CCO shall also do the following:
(a) Notify the Authority in a separate
letter, not later than the 10th business day after the date of the notice of
dismissal or resignation, whether in the 24 months preceding the engagement
there were any disagreements with the former accountant on any matter of
accounting principles or practices, financial statement disclosure or auditing
scope or procedure that, if not resolved to the satisfaction of the former
accountant, would have caused the former accountant to make reference to the
subject matter of the disagreement in connection with the accountant's opinion.
The disagreements required to be reported in response to this subsection
include both those resolved to the former accountant's satisfaction and those
not resolved to the former accountant's satisfaction and are those
disagreements that occur at the decision-making level, between personnel of the
CCO responsible for presentation of its financial statements and personnel of
the accounting firm responsible for rendering its report.
(b) Request the former accountant, in
writing, to furnish a letter addressed to the CCO stating whether the
accountant agrees with the statements contained in the CCO's letter and, if
not, stating the reasons for which the accountant does not agree.
(c) Furnish the Authority the letter received
from the former accountant under subsection (b) of this section together with a
response by the CCO to that letter.