New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle T - New York State Gaming Commission › Chapter VI - Interactive Fantasy Sports › Subchapter A - Public Access to Records › Part 5605 - Accounting Controls › Section 5605.1 - Audited financial statements

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
Annual audit requirement.
A registrant, unless specifically
					 exempted by the commission in writing, shall, at such registrant's own expense,
					 cause such registrant's annual financial statements to be audited in accordance
					 with generally accepted auditing standards by an independent certified public
					 accountant licensed to practice.
(b)
Requirements for audited
					 statements.
The annual financial statements required by subdivision
					 (a) of this section shall be prepared on a comparative basis for a registrant's
					 current and prior standard financial year. Such statements shall present
					 financial position and results of operations in conformity with generally
					 accepted accounting principles.
(c)
Other financial information.
The commission may require other
					 financial information, in a format the commission prescribes, to be included as
					 supplementary information in relation to the audited financial statements as a
					 whole. Such information shall be subjected to auditing procedures as required
					 by generally accepted auditing standards and include the independent auditors'
					 report on such supplementary information.
(d)
Filing with commission.
A copy of a registrant's audited financial statements, together with the report
					 thereon of the registrant's independent certified public accountant, shall be
					 filed with the commission within 10 business days of the completion of the
					 annual independent audit of the registrant's financial statements.
(e)
Management letter.
In
					 addition to a registrant's audited financial statements, each registrant shall
					 submit a copy of the management letter prepared by the independent certified
					 public accountant that lists any internal control or operational weaknesses
					 noted during the financial statement audit and recommendations for improvement.
					 The registrant shall prepare a response to the issues outlined in the
					 management letter that describes any corrective actions taken or planned to be
					 taken and include a copy of this response with such registrant's submission to
					 the commission.
(f)
Additional requirements.
In addition to the management letter,
					 the commission may require a registrant to engage an independent certified
					 public accountant approved by the commission to perform an additional review of
					 internal controls for the operation of interactive fantasy sports, cause such
					 registrant's business and managerial practices to be audited and review
					 specified expenditures that conform to specifications the commission
					 prescribes. The commission shall notify a registrant of the type of report
					 required, the scope of such report and the frequency with which such report
					 should be performed. This review shall be performed at the expense of the
					 registrant unless the commission determines otherwise. A registrant shall
					 respond to recommendations in such report, noting any corrective actions taken
					 or planned to be taken. A registrant shall submit to the commission two copies
					 of such report, including the required response to the commission, within 120
					 days following the end of the periods covered by such report, unless the
					 Commission instructs otherwise.
(g)
Publicly held registrant.
If a registrant, or any of its
					 affiliates, is publicly held, such registrant or the affiliate shall make
					 available and provide written notice to the commission any report. Such reports
					 include, without limitation, forms S-1, 8-K, 10-Q, 10-K, proxy or information
					 statements and all registration statements required to be filed by such
					 licensee or affiliates with the United States Securities and Exchange
					 Commission or other domestic or foreign securities regulatory agency, at the
					 time of filing with the such agency.
(h)
Resignation or dismissal of
					 accountant.
If an independent certified public accountant who was
					 previously engaged as the principal accountant to audit a registrant's
					 financial statements resigns or is dismissed as such registrant's principal
					 accountant, or another independent certified public accountant is engaged as
					 principal accountant, then:
(1) such
					 registrant shall file a report with the commission within 10 days following the
					 end of the month in which such event occurs, setting forth the following:
(i) the date of such resignation, dismissal,
					 or engagement;
(ii) 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 disagreement, including a
					 description of each such disagreement. The disagreements to be reported shall
					 include those resolved and those not resolved; and
(iii) whether the principal 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;
					 and