R 432.554 Independent financial audit.

Rule 554. (1) By July 1 of each year, a fantasy contest operator and any licensed management company that manages day-to-day fantasy contest operations of the fantasy contest operator must contract with an independent certified public accountant to perform an independent audit, in accordance with generally accepted accounting principles, of the financial condition of the fantasy contest operator's and licensed management company’s total operations for the previous fiscal year and assess the fantasy contest operator’s and licensed management company’s compliance with R 432.535a and section 14 of the act, MCL 432.514. (2) A fantasy contest operator and any licensed management company that manages day-to-day fantasy contest operations of the fantasy contest operator must submit an audit engagement letter to the board at least 30 days before the commencement of the audit. The audit engagement letter must meet all of the following conditions, at a minimum: (a) The scope of the audit must include, at a minimum, each area required under subrule (1) of this rule. (b) The audit must be performed in accordance with generally accepted auditing standards or their equivalent as approved by the board. (c) The audit must assess the fair presentation of fantasy contest adjusted revenues and payment of all required taxes and fees required under the act and these rules. (d) The audit report must contain an opinion of the independent certified public accountant as to its fair presentation in accordance with generally accepted accounting principles. (e) The audit must meet any other conditions considered appropriate by the board. (3) A fantasy contest operator and any licensed management company that manages day-to-day fantasy contest operations of the fantasy contest operator must submit the audit results under this rule to the board not later than 180 days after the end of the fiscal year to which the audit results apply. (4) A fantasy contest operator and any licensed management company that manages day-to-day fantasy contest operations of the fantasy contest operator is responsible for the cost of the audit.