14 Va. Admin. Code § 5-270-120
Current through Register Vol. 41, No. 6, November 4, 2024
Section 14VAC5-270-120 - Communicating internal control related matters identified in an auditA. In addition to the annual Audited Financial Report, each insurer shall furnish the commission with a written communication as to any unremediated material weaknesses in its internal controls over financial reporting identified during the audit. The communication shall be prepared by the accountant within 60 days after the filing of the annual Audited Financial Report, and shall contain a description of any unremediated material weakness (as the term material weakness is defined in AU-C Section 265 of the AICPA Professional Standards, Communicating Internal Control Related Matters Identified in an Audit) as of the immediately preceding December 31 (so as to coincide with the Audited Financial Report discussed in 14VAC5-270-50 A) in the insurer's internal control over financial reporting identified by the accountant during the course of the audit of the financial statements. If no unremediated material weaknesses were identified, the communication should so state.B. The insurer is required to provide a description of remedial actions taken or proposed to correct unremediated material weaknesses if the actions are not described in the accountant's communication.C. The insurer is expected to maintain information about significant deficiencies communicated by the independent certified public accountant. The information should be made available to the examiner conducting a financial condition examination for review and kept in a manner as to remain confidential.14 Va. Admin. Code § 5-270-120
Derived from Regulation 39, Case No. INS910072, § 13, eff. September 1, 1991; amended, Virginia Register Volume 24, Issue 12, eff. January 1, 2010; Amended, Virginia Register Volume 32, Issue 09, eff. 1/1/2016.Statutory Authority: §§ 12.1-13 and 38.2-223 of the Code of Virginia.