Section 407-710-1 - Auditing RequiredEach public utility, except as noted below, shall have an annual audit made of its accounts. The audit shall be conducted by a qualified independent certified public accountant in accordance with generally accepted auditing standards. The audit may be conducted for a 12-month period other than a calendar year, provided that the same 12-month period is audited annually.
A. Pursuant to 35-A M.R.S.A. §505(1) qualified small water utilities (those that are consumer owned with gross annual revenues that do not exceed $250,000) shall not be required to have an annual audit of its accounts except as follows: 1. A qualified small water utility with gross annual revenues of $50,000 or less shall for any year used as a test year for ratemaking purposes cause to be conducted, in accordance with generally accepted auditing standards, an audit of its accounts by an independent certified public accountant licensed to practice in the State;2. A qualified small water utility with gross annual revenues greater than $50,000: a. Shall cause to be conducted, in accordance with generally accepted auditing standards, an annual review of its accounts by an independent certified public accountant licensed to practice in the State; andb. Not less than once every 5 years and for any year used as a test year for ratemaking purposes, shall cause to be conducted, in accordance with generally accepted auditing standards, an audit of its accounts by an independent certified public accountant licensed to practice in the State.65- 407 C.M.R. ch. 710, § 1