Utah Admin. Code R590-254-3 - Definitions
Terms used in this rule are defined in Section 31A-1-301. Other terms are defined as follows:
(1) "Accountant "
or "independent certified public accountant " means an independent certified
public accountant or accounting firm in good standing:
(a) with the American Institute of Certified
Public Accountants (AICPA); and
(b)
in all states in which the accountant or independent certified public
accountant is licensed to practice;
(c) for Canadian and British companies, it
means a Canadian-chartered or British-chartered accountant .
(2) An "affiliate " of, or person
"affiliated" with, a specific person, is a person that directly, or indirectly
through one or more intermediaries, controls, or is controlled by, or is under
common control with, the person specified.
(3) "Audit committee " means a committee, or
equivalent body, established by the board of directors of an entity for the
purpose of overseeing the accounting and financial reporting processes of an
insurer or group of insurers, and audits of financial statements of the insurer
or group of insurers.
(a) The audit committee
of any entity that controls a group of insurers may be the audit committee for
one or more of these controlled insurers solely for the purposes of this rule
at the election of the controlling person pursuant to Subsection
R590-254-14(6).
(b) If an audit committee is not designated
by the insurer, the insurer's entire board of directors shall constitute the
audit committee .
(5) "Indemnification " means an agreement of
indemnity or a release from liability where the intent or effect is to shift or
limit in any manner the potential liability of the person or firm for failure
to adhere to applicable auditing or professional standards, whether or not
resulting in part from knowing of other misrepresentations made by the insurer
or its representatives.
(7) "Group of insurers " means those licensed
insurers:
(a) included in the reporting
requirements of Chapter 31A-16, Insurance Holding Companies; or
(b) a set of insurers as identified by
management, for the purpose of assessing the effectiveness of internal control
over financial reporting .
(8) "Internal control over financial
reporting " means a process effected by an entity's board of directors,
management, and other personnel designed to provide reasonable assurance
regarding the reliability of the financial statements specified in Subsections
R590-254-5(2)(b)
through R590-254-5(2)(g)
and includes those policies and procedures that:
(a) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of assets;
(b) provide
reasonable assurance that transactions are recorded as necessary to permit
preparation of the financial statements specified in Subsections
R590-254-5(2)(b)
through R590-254-5(2)(g)
and that receipts and expenditures are being made only in accordance with
authorizations of management and directors; and
(c) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition
of assets that could have a material effect on the financial statements
specified in Subsections
R590-254-5(2)(b)
through R590-254-5(2)(g).
(9) "SEC " means the United States
Securities and Exchange Commission.
(10) "Section 404" means Section 404 of the
Sarbanes-Oxley Act of 2002 and the SEC 's rules and regulations promulgated
thereunder.
(11) "Section 404
Report" means management's report on "internal control over financial
reporting " as defined by the SEC and the related attestation report of the
independent certified public accountant .
(12) "SOX compliant entity " means an entity
that either is required to be compliant with, or voluntarily is compliant with,
each of the following provisions:
(a) the
preapproval requirements of Section 201 of the Sarbanes-Oxley Act of 2002,
under Section 10A(i) of the Securities Exchange Act of 1934;
(b) the audit committee independence
requirements of Section 301 of the Sarbanes-Oxley Act of 2002, under Section
10A(m)(3) of the Securities Exchange Act of 1934; and
(c) the internal control over financial
reporting requirements of Section 404 of the Sarbanes-Oxley Act of 2002, under
Item 308 of SEC Regulation S-K.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.