N.M. Admin. Code § 13.2.5.22

Current through Register Vol. 35, No. 24, December 23, 2024

Section 13.2.5.22 - REPORT ON UNREMEDIATED MATERIAL WEAKNESSES IN INTERNAL CONTROLS

A. Within 60 days after the filing of the annual audited financial statements, an insurer shall submit to the superintendent a written report prepared by the ICPA describing any unremediated material weaknesses in the insurer's internal control structure noted by the ICPA during the audit. SAS No. 112, Communication of Internal Control Structure Matters Noted in an Audit (AU Section 325A of the Professional Standards of the AICPA) requires an ICPA to communicate unremediated material weaknesses (known as reportable conditions) noted during a financial statement audit to the appropriate person's within an entity. If no unremediated weakness were noted, the communication should so state.

B. An insurer shall provide a description of remedial actions taken or proposed to correct unremediated material weaknesses, if such actions are not described in the ICPA's communication.

C. No report on unremediated material weaknesses in internal controls should be issued if the ICPA does not identify unremediated material weaknesses.

N.M. Admin. Code § 13.2.5.22

13.2.5.22 NMAC - N, 1/1/2010, Amended by New Mexico Register, Volume XXXI, Issue 18, September 29, 2020, eff. 10/1/2020