§ 58-10-220. Scope of audit and report of independent certified public accountant.
§ 58‑10‑220. Scope of audit and report of independent certified public accountant.
Financial statements furnishedpursuant to G.S. 58‑10‑200 shall be examined by the independentcertified public accountant. The audit of the insurer's financial statements shallbe conducted in accordance with generally accepted auditing standards. Inaccordance with AU Section 319 of the Professional Standards of the AICPA,Consideration of Internal Control in a Financial Statement Audit, theindependent certified public accountant should obtain an understanding ofinternal control sufficient to plan the audit. To the extent required by AUSection 319, for those insurers required to file a management's report ofinternal control over financial reporting pursuant to G.S. 58‑10‑255,the independent certified public accountant should consider, as that term isdefined in "Statement on Auditing Standards No. 102 of the AICPAProfessional Standards, Defining Professional Requirements in Statements onAuditing Standards" or its replacement, the most recently available reportin planning and performing the audit of the statutory financial statements.Consideration shall be given to the procedures illustrated in the FinancialCondition Examiners Handbook promulgated by the NAIC as the independentcertified public accountant deems necessary. (2009‑384, s. 1.)