Section 3-122-179 - Contract audit(a) Under the authority of section 3-122-175, the type of contract under which books and records should be audited is that in which price is based on costs or is subject to adjustment based on costs, or that in which auditing would be appropriate to assure satisfactory performance, as a time and materials contract.(b) The requirement of a contract audit may be warranted when a question arises in connection with: (1) The financial condition, integrity, and reliability of the contractor or subcontractor;(2) Any prior audit experience;(3) The adequacy of the contractor's or subcontractor's accounting system;(4) The number or nature of invoices or reimbursement vouchers submitted by the contractor or subcontractor for payment;(5) The use of federal assistance funds;(6) The fluctuation of market prices affecting the contract; or(7) Any other situation when the procurement officer finds that an audit is necessary for the protection of the State's interest.(c) The scope of the audit may be limited by the chief procurement officer, the head of the purchasing agency, the attorney general or corporation counsel with legal authority over the purchasing agency, or a designee of either officer.[Eff 12/15/95; am and comp 11/17/97; comp MAR 21 2008] (Auth: HRS § 103D-202) (Imp: HRS § 103D-317)