§ 58-10-230. Communication of internal control related matters noted in an audit.
§ 58‑10‑230. Communication of internal control related matters noted in an audit.
(a) In addition to theannual audited financial report, each insurer shall furnish the Commissionerwith a written communication as to any unremediated material weaknesses in itsinternal control over financial reporting noted during the audit. Suchcommunication shall be prepared by the accountant within 60 days after thefiling of the annual audited financial report and shall contain a descriptionof any unremediated material weakness, as the term "materialweakness" is defined by "Statement on Auditing Standards No. 112 ofthe AICPA Professional Standards, Communication of Internal Control RelatedMatters Noted in an Audit," or its replacement, as of December 31immediately preceding, so as to coincide with the audited financial reportdescribed in G.S. 58‑10‑195(a) in the insurer's internal controlover financial reporting noted by the accountant during the course of theiraudit of the financial statements. If no unremediated material weaknesses arenoted, the communication should so state.
(b) The insurer shallprovide a description of remedial actions taken or proposed to correctunremediated material weaknesses, if the actions are not described in theaccountant's communication. (2009‑384, s. 1.)