205 ILCS 635/3-2
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 635/ - Residential Mortgage License Act of 1987.|Article III - Operations, Capitalization, Insurance

 (from Ch. 17, par. 2323-2)Sec. 3-2. Annual audit.(a) At the licensee's fiscal year-end, but in no  case more than 12 months after the last audit conducted pursuant to this  Section, except as otherwise provided in this Section, it shall be  mandatory for each residential mortgage licensee to  cause its books and accounts to be audited by a certified public accountant  not connected with such licensee.  The books and records of all licensees  under this Act shall be maintained on an accrual basis.  The audit must be  sufficiently comprehensive in scope to permit  the expression of an opinion on the financial statements, which must be  prepared in accordance with generally accepted accounting principles, and  must be performed in accordance with generally accepted auditing standards.  Notwithstanding  the requirements of this subsection, a licensee that is a subsidiary  may submit audited consolidated financial statements of its parent, intermediary parent, or ultimate parent as long as  the consolidated statements are supported by consolidating statements which include the licensee's financial statement.  If the consolidating statements are unaudited, the  licensee's chief financial officer shall attest to the licensee's financial  statements disclosed in the consolidating statements.(b) As used herein, the term "expression of opinion" includes either  (1) an unqualified opinion, (2) a qualified opinion, (3) a disclaimer of  opinion, or (4) an adverse opinion.(c) If a qualified or adverse opinion is expressed or if an opinion is  disclaimed, the reasons therefore must be fully explained.  An opinion,  qualified as to a scope limitation, shall not be acceptable.(d) The most recent audit report shall be filed with the  Commissioner within 90 days after the end of the licensee's fiscal year, or with the Nationwide Multistate Licensing System and Registry, if applicable, pursuant to Mortgage Call Report requirements.  The report  filed with the Commissioner shall be certified by the certified public  accountant conducting the audit.  The Commissioner may promulgate rules  regarding late audit reports.(e) (Blank).(f) In lieu of the audit or compilation financial statement  required by this Section, a licensee shall submit and the Commissioner may  accept any audit made in conformance with the audit  requirements of the U.S. Department of Housing and Urban Development.(g) With respect to licensees who solely broker residential mortgage  loans as defined in subsection (o) of Section 1-4, instead of the audit  required by this Section, the Commissioner may  accept  compilation financial statements prepared at least every 12 months, and  the compilation financial statement must be submitted within 90 days after the end of  the licensee's fiscal year, or with the Nationwide Multistate Licensing System and Registry, if applicable, pursuant to Mortgage Call Report requirements.  A licensee who  files false or misleading compilation financial statements is guilty of a  business offense and shall be fined not less than $5,000.(h) The workpapers of the certified public accountants employed  by each  licensee for purposes of this Section are to be made available to the  Commissioner or the Commissioner's designee upon request and may be  reproduced by the Commissioner or the Commissioner's designee to enable to  the Commissioner to carry out the purposes of this Act.(i) Notwithstanding any other provision of this Section, if a licensee  relying on subsection (g) of this Section causes its books to be audited at any  other time or causes its financial statements to be reviewed, a complete copy  of the audited or reviewed financial statements shall be delivered to the  Commissioner at the time of the annual license renewal payment following  receipt by the licensee of the audited or reviewed financial statements.  All workpapers shall be made available to the  Commissioner upon request.  The financial statements and workpapers may be  reproduced by the Commissioner or the Commissioner's designee to carry out the  purposes of this Act.  (Source: P.A. 99-933, eff. 1-27-17; 100-1153, eff. 12-19-18.)