Md. Code Regs. 36.09.04.04

Current through Register Vol. 51, No. 22, November 1, 2024

Section 36.09.04.04 - Financial Auditing

A. A fantasy competition operator that conducts competitions that require an entry fee and that generates gross annual revenues of $250,000 or more in Maryland shall ensure that a financial audit is performed annually by a certified public accountant.

B. The certified public accounting firm that conducts the financial audit shall:

(1) Comply with generally accepted accounting principles; and

(2) Submit the financial audit report to the Commission within 180 days of the fantasy competition operator's fiscal year end.

C. The financial audit does not preclude any State or federal agency from conducting an audit of a fantasy competition operator.

D. Auditor Exception.

(1) The same certified public accountant may not perform more than five consecutive financial audits for a fantasy competition operator unless:

(a) The fantasy competition operator requests and obtains preapproval of the Commission; and

(b) A different audit partner manages the audit after 5 years.

(2) If a different audit partner cannot be assigned, a fantasy competition operator shall advise the Agency prior to the beginning of the audit.

E. If the Commission deems it necessary, the Commission may require a fantasy competition operator that is not otherwise required by §A of this regulation to have a financial audit performed by a certified public accountant.

Md. Code Regs. 36.09.04.04

Regulation .04 recodified and amended from 36.09.01.13 effective 49:3 Md. R.137, eff. 12/16/2021; amended and recodified from 36.09.01.13 effective 49:11 Md. R. 610, eff. 5/30/2022