§  64.904   Independent audits.

   (a) Each carrier required to file a cost allocation manual shall elect
   to either have an attest engagement performed by an independent auditor
   every two years, covering the prior two year period, or have a
   financial audit performed by an independent auditor every two years,
   covering the prior two year period. In either case, the initial
   engagement shall be performed in the calendar year after the carrier is
   first required to file a cost allocation manual.

   (b) The attest engagement shall be an examination engagement and shall
   provide a written communication that expresses an opinion that the
   systems, processes, and procedures applied by the carrier to generate
   the results reported pursuant to §  43.21(e)(2) of this chapter comply
   with the Commission's Joint Cost Orders issued in conjunction with CC
   Docket No. 86-111, the Commission's Accounting Safeguards proceeding in
   CC Docket No. 96-150, and the Commission's rules and regulations
   including § §  32.23 and 32.27 of this chapter, and § §  64.901, and 64.903
   in force as of the date of the auditor's report. At least 30 days prior
   to beginning the attestation engagement, the independent auditors shall
   provide the Commission with the audit program. The attest engagement
   shall be conducted in accordance with the attestation standards
   established by the American Institute of Certified Public Accountants,
   except as otherwise directed by the Chief, Enforcement Bureau.

   (c) The biennial financial audit shall provide a positive opinion on
   whether the applicable date shown in the carrier's annual report
   required by §  43.21(e)(2) of this chapter present fairly, in all
   material respects, the information of the Commission's Joint Cost
   Orders issued in conjunction with CC Docket No. 86-111, the
   Commission's Accounting Safeguards proceeding in CC Docket No. 96-150,
   and the Commission's rules and regulations including § §  32.23 and 32.27
   of this chapter, and § §  64.901, and 64.903 in force as of the date of
   the auditor's report. The audit shall be conducted in accordance with
   generally accepted auditing standards, except as otherwise directed by
   the Chief, Enforcement Bureau. The report of the independent auditor
   shall be filed at the time that the carrier files the annual reports
   required by §  43.21(e)(2) of this chapter.

   [ 67 FR 5702 , Feb. 6, 2002, as amended at  67 FR 13229 , Mar. 21, 2002]

   return arrow Back to Top