2023 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; and
b. 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; and
c. 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.