<html> <head> <title>Rule 20:18:22:02 Audit procedures -- Appeal.</title> <META NAME="Keywords" Content="Administrative Rules 20:18:22:02"> <META NAME="Description" Content="Administrative Rules 20:18:22:02 Audit procedures -- Appeal."> <meta name=Generator content="Microsoft Office HTML Filter 2.0"> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Originator content="Microsoft Word 10"> <style> <!-- --> </style> </head> <body lang=EN-US> <div> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>20:18:22:02.&nbsp;&nbsp;Audit procedures -- Appeal.</b> The executive secretary's operations division must take the following actions pertaining to audits of licensees:</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;Conduct periodic audits or reviews of the books and records of licensees;</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;Review the accounting methods and procedures used by licensees;</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3)&nbsp;&nbsp;Review and observe methods and procedures used by licensees to count and handle cash, chips, tokens, and negotiable instruments;</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4)&nbsp;&nbsp;Examine and review licensees' internal control procedures;</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5)&nbsp;&nbsp;Examine accounting and bookkeeping records and ledger accounts of the licensee or a person controlling, controlled by, or under common control with the licensee;</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (6)&nbsp;&nbsp;Examine the books and records of a licensee when conditions indicate the need for the action or on the request of the executive secretary or the commission; and</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (7)&nbsp;&nbsp;Investigate each licensee's compliance with SDCL chapter <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=42-7B">42-7B</A> and this article.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The commission staff must conduct audits, prepare an audit report, and submit the report to the commission.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At the conclusion of an audit, the operations division must review the results of the audit with the licensee. Within 10 days after the review, the licensee must submit written reasons why the results of the audit should not be accepted. The commission must consider the submission prior to its determination.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the operations division finds that the licensee is required to pay additional fees and taxes or finds that the licensee is entitled to a refund of fees and taxes, it must report its findings and the legal basis on which the findings are made to the commission and executive secretary and to the licensee in sufficient detail to enable the commission to determine if an assessment or refund is required.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 16 SDR 57, effective October 1, 1989; 19 SDR 177, effective May 27, 1993; 20 SDR 113, effective January 23, 1994; 25 SDR 4, effective July 27, 1998.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=42-7B-7">42-7B-7</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=42-7B-11">42-7B-11(2)(4)(13).</A></p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=42-7B-3">42-7B-3</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=42-7B-7">42-7B-7</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=42-7B-11">42-7B-11</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=42-7B-17">42-7B-17.</A></p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Cross-Reference:</b> Auditing, accounting, and review standards, §&nbsp;20:37:11:07.</p> </div> </body> </html>