§  53.211   Audit planning.

   (a) Before selecting an independent auditor, the Bell operating company
   shall submit preliminary audit requirements, including the proposed
   scope of the audit and the extent of compliance and substantive
   testing, to the Federal/State joint audit team organized pursuant to
   §  53.209(d);

   (b) The Federal/State joint audit team shall review the preliminary
   audit requirements to determine whether it is adequate to meet the
   audit requirements in §  53.209 (b). The Federal/State joint audit
   shall have 30 days to review the audit requirements and determine any
   modifications that shall be incorporated into the final audit
   requirements.

   (c) After the audit requirements have been approved by the
   Federal/State joint audit team, the Bell operating company shall engage
   within 30 days an independent auditor to conduct the biennial audit. In
   making its selection, the Bell operating company shall not engage any
   independent auditor who has been instrumental during the past two years
   in designing any of the accounting or reporting systems under review in
   the biennial audit.

   (d) The independent auditor selected by the Bell operating company to
   conduct the audit shall develop a detailed audit program based on the
   final audit requirements and submit it to the Federal/State joint audit
   team. The Federal/State joint audit team shall have 30 days to review
   the audit program and determine any modifications that shall be
   incorporated into the final audit program.

   (e) During the course of the biennial audit, the independent auditor,
   among other things, shall:

   (1) Inform the Federal/State joint audit team of any revisions to the
   final audit program or to the scope of the audit.

   (2) Notify the Federal/State joint audit team of any meetings with the
   Bell operating company or its separate affiliate in which audit
   findings are discussed.

   (3) Submit to the Chief, Enforcement Bureau, any accounting or rule
   interpretations necessary to complete the audit.

   [ 62 FR 2926 , Jan. 21, 1997, as amended at  67 FR 13226 , Mar. 21, 2002]

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