Pennsylvania Code › Title 31 - INSURANCE › Part VIII - Miscellaneous Provisions › Chapter 147 - ANNUAL FINANCIAL REPORTING REQUIREMENTS › Section 147.11 - Definitions, availability and maintenance of independent certified public accountant workpapers

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
				Workpapers are the records kept by an independent certified public accountant
				of the procedures followed, the tests performed, the information obtained and
				the conclusions reached pertinent to audit of the financial statements of an
				insurer. For purposes of this chapter, workpapers include audit planning
				documentation, audit programs, permanent files, internal control and electronic
				data processing questionnaires, analyses, memoranda, letters of confirmation
				and representation, abstracts of company documents and schedules or
				commentaries which are prepared or obtained by the independent certified public
				accountant in the course of the independent certified public accountant's audit
				of the financial statements of an insurer and which support the opinion
				thereon.
(b) Every insurer required
				to file an annual audited financial report under this chapter shall require the
				independent certified public accountant to make available, through the insurer,
				for review by Department examiners workpapers prepared in the conduct of the
				audit, as well as communications related to the audit between the independent
				certified public accountant and the insurer, including the engagement letter,
				at the offices of the insurer, at the offices of the independent certified
				public accountant, at the offices of the Department or at another reasonable
				place designated by the Commissioner. The insurer shall require that the
				independent certified public accountant retain the audit workpapers and
				communications for at least 7 years after the period reported on and agree to
				make a partner or manager available to the Department upon reasonable
				request.
(c) In the conduct of the
				periodic review by Department examiners described in subsection (b), electronic
				copies or photocopies of pertinent audit workpapers may be made and retained by
				the Department.
(d) Copies of audit
				workpapers so obtained in the course of review will be considered part of the
				record of examination of the Commissioner and will be held as confidential
				records.
The provisions of this §
											147.11 amended under the authority
					 of sections 206, 506, 1501 and 1502 of The Administrative Code of 1929
					 (71
					 P.S. §§
												66,
					 186,
					 411 and
					 412); sections 320, 630, 1007
					 and 2452 of The Insurance Company Law of 1921 (40 P.S. §§
												443,
					 764a,
					 967 and
					 991.2452); sections 205 and
					 206 of The Pennsylvania Fair Plan Act (40 P.S. §§
												1600.205 and
					 1600.206); section 731 of the
					 Medical Care Availability and Reduction of Error (MCARE) Act (40 P.S. §
												1303.731);
					 40 Pa.C.S. §§
												6125,
					 6331 and
					 6701); sections 11 and 14
					 of the Health Maintenance Organization Act (40 P.S. §§
												1561 and
					 1564); and sections 7 and 25
					 of the Continuing-Care Provider Registration and Disclosure Act (40 P.S.
					 §§
												3207 and
					 3225).
This section cited in 31 Pa. Code §
											147.6a (relating to letter of
					 qualifications of independent certified public accountant); 31 Pa. Code §
											147.12 (relating to examinations);
					 31 Pa. Code §
											147.14 (relating to penalties);
					 and 31 Pa. Code §
											147.15 (relating to letter of
					 qualifications of independent certified public
					 accountant).