68 IAC 26-5-2 Qualifications of financial auditor

Sec. 2. (a) An independent certified public accountant or independent certified public accounting firm selected to perform a financial statement audit must meet the following qualifications and must affirm that it meets these qualifications as part of a written agreement with the game operator licensee to perform the audit: (1) Be independent with respect to the game operator licensee, its parents, and investors. Standards of independence are to be determined by pronouncements of the American Institute of Certified Public Accountants and the Securities and Exchange Commission. (2) Have sufficient experience in the gaming industry or related industries. (3) Have an adequate number of professional personnel to meet the requirements of the engagement in a timely and efficient manner. (b) An independent certified public accountant or independent certified public accounting firm selected to perform a financial statement audit must not express an opinion on financial statements of a game operator licensee unless it is independent from that game operator licensee. Impairments to independence include, but are not limited to, the following: (1) During the period of the professional engagement to perform an audit, or at the time the opinion was issued, the auditing person: (A) had or was committed to acquire any direct or material indirect financial interest in the game operator licensee; (B) was a trustee of any trust or executor or administrator of any estate if the trust or estate had or was committed to acquire any direct or material indirect financial interest in the game operator licensee; (C) had any joint closely held business investment with the game operator licensee or any key person or substantial owner thereof that was material in relation to the auditing person or the auditing person's firm's net worth; or (D) had any loan to or from the game operator licensee or any key person or substantial owner thereof, when made under normal lending procedures, terms, and requirements, except: (i) loans that are not material to the net worth of the borrower; (ii) home mortgages; and (iii) other secured loans, except loans guaranteed by the auditing person's firm that are otherwise unsecured. (2) During the period covered by the game operator licensee's financial statements, during the period of the professional engagement to perform an audit, or at the time the opinion is issued, the auditing person was: (A) connected with the game operator licensee as a promoter, underwriter, voting trustee, key person, or in any capacity equivalent to that of a key person or employee; or (B) a trustee for any pension or profit-sharing trust of the game operator licensee. (3) Functioning as if a key person of the game operator licensee. (4) Performing an audit of the independent certified public accountant or independent certified public accounting firm's own work. (5) Advocacy for the game operator licensee. (6) Having any other role with the game operator licensee or affiliates other than as the independent auditor. (c) The same certified public accountant may not perform more than two (2) consecutive financial audits for a game operator under this rule.