NY Rac, Pari-Mut Wag & Breeding L § 240 (2021)
2021 New York Laws PML - Racing, Pari-Mutuel Wagering and Breeding Law Article 2 - Thoroughbred Racing and Breeding 240 - Yearly Audit.

§  240.  Yearly audit. 1. The franchised corporation shall, at its own   expense,  cause  its  annual  financial  statements  to  be  audited  in   accordance  with  generally  accepted  auditing standards by a qualified   independent  certified  public  accountant  approved  by  the  franchise   oversight  board. The annual financial statements shall be prepared on a   comparative basis for the  current  and  prior  fiscal  year  and  shall   present  the  financial position and results of operations in conformity   with generally accepted  accounting  principles.  Three  manually-signed   copies  of  the  audited  financial statements, together with the report   thereon of the franchised  corporation's  independent  certified  public   accountant  shall  be filed: one with the franchise oversight board, one   with such franchised corporation and one with the office of the attorney   general, not later than ninety days following  the  end  of  the  fiscal   year.  All  such  annual financial statements and yearly audits shall be   subject to audit by the state comptroller and shall be public records.2. The franchised corporation shall require the independent  certified   public accountant to render the following additional reports:a. a report on material weakness in accounting, internal controls, and   business  and  management practices discovered in the ordinary course of   preparing such audited financial statements. Whenever in the opinion  of   the  independent  certified  public  accountant there exists no material   weaknesses in accounting, internal controls and business and  management   practices, no report shall be required; andb. a report expressing the opinion of the independent certified public   accountant  that  based  on  his  or  her  examination  of the financial   statements the franchised corporation  has  followed,  in  all  material   respects,  during  the  period  covered  by  his or her examination, the   system of accounting and internal control as filed  with  the  franchise   oversight  board.  Whenever  in the opinion of the independent certified   public accountant the  franchised  corporation  has  deviated  from  the   system  of  accounting  and  internal  controls filed with the franchise   oversight  board  or  the  accounts,  records,  and  control  procedures   examined  are not maintained by the franchised corporation in accordance   with generally accepted accounting standards the report shall  enumerate   such  deviations. The independent certified public accountant shall also   report on areas of the system no longer considered effective, and  shall   make  recommendations in writing regarding improvements in the system of   accounting and internal controls.3. If the independent certified public accountant who  was  previously   engaged  to  audit  the  franchised  corporation's  financial statements   resigns or is dismissed as  the  franchised  corporation's  auditor,  or   another  independent  certified public accountant is engaged as auditor,   the franchised corporation  shall  file  a  report  with  the  franchise   oversight  board within ten days following the end of the month in which   such event occurs, setting forth the following:a. the date of such resignation, dismissal, or engagement;b. whether in connection with the audits of the two most recent  years   preceding  such  resignation,  dismissal,  or  engagement there were any   disagreements with the former accountant on  any  matter  of  accounting   principles  or  practices,  financial  statement disclosure, or auditing   scope  or  procedure,  which  disagreements  if  not  resolved  to   the   satisfaction  of the former accountant would have caused such accountant   to make reference in connection with such  accountant's  report  to  the   subject matter of the disagreement; including a description of each such   disagreement.  The  disagreements  to be reported include those resolved   and those not resolved; andc. whether the former accountant's report on the financial  statements   for any of the past two years contained an adverse opinion or disclaimer    of  opinion  or  was  qualified.  The  nature  of  such adverse opinion,   disclaimer of opinion, or qualification shall be described.4.  Upon  direction  of  the franchise oversight board, the franchised   corporation shall, at its own expense, cause its business and managerial   practices to be audited.