Section 720.320 - Compliance audit: Performance; report to Secretary of State1. A licensee shall obtain an audit at least once each year to receive an opinion as to whether the licensee is in material compliance with the requirements of this chapter. If the Secretary of State has designated a repository operated by the licensee as a recognized repository, the audit must include the operation of the recognized repository.2. The auditor shall exercise reasonable professional judgment in determining whether a condition that is not in strict compliance with the requirements of this chapter is material, taking into consideration the particular circumstances and context. In addition to any other conditions the auditor determines to be material, the auditor shall consider as material:(a) Any condition relating to the validity of a certificate that does not comply with the requirements of this chapter.(b) Noncompliance with the requirements of NAC 720.350.(c) Noncompliance with the provisions of this chapter regarding the use of a trustworthy system.3. The licensee must file a copy of the audit report with the Secretary of State before his or her license may be renewed. The report may be filed electronically if the electronic message complies with the requirements of this chapter. The licensee is not required to file the complete audit report if he or she files a summary of the report that:
(a) States the target of evaluation of the audit;(b) Describes all audit exceptions and conditions of noncompliance included in the complete report, including, without limitation, any conditions described in subsection 2; and(c) Bears the signature of the auditor.Nev. Admin. Code § 720.320
Added to NAC by Sec'y of State by R155-98, eff. 12-2-99