Section 384:43 Annual Audits.
I. The board of trustees or directors of every financial institution, except credit unions, under the supervision of the bank commissioner, shall employ a certified public accountant or public accountant, at least annually, to serve as its auditor.
II. The auditors selected in paragraph I, shall examine the books, accounts and operating systems of the institution in such a manner as in their judgment will result in an audit that is in agreement with generally accepted accounting standards.
III. Institutions subject to this section may satisfy the requirements of paragraphs I and II by:
(a) Engaging an independent external accounting firm which renders an audit report and opinion consistent with the duties of the auditor described in paragraph II; or
(b) Employing an internal audit staff which conducts a continuing internal audit program, provided an independent external auditor reviews the internal audit procedures and reports to the board annually; or
(c) Entering into an arrangement with the bank commissioner, approved by the directors by duly recorded vote and by the commissioner in writing, under which the commissioner makes one examination each year of the affairs of the institution. The expense of such examination shall be chargeable to and paid by the institution. The procedure for such payment shall be the same as for payments by institutions for cost of examinations under RSA 383:11. Sums collected under this section shall be payable to the state treasurer as restricted revenue and credited to the appropriation for the bank commissioner. Any such arrangement may be terminated by either party upon at least 30 days notice in writing.
IV. Each financial institution shall direct its auditor to provide the bank commissioner with a copy of its audit report, within 60 days after each is made available to the financial institution. Reports on the review of internal audit program shall be submitted in a format prescribed by the commissioner in a rule adopted pursuant to RSA 541-A. All such reports, memoranda, and correspondence remain the property of the individual financial institution.
V. The bank commissioner shall, in the course of his regular official examination of the institution and at such other times that he considers advisable, review and analyze the work and reports of such accountants and auditors. If the commissioner determines that any audit is inadequate or substantially violates the provisions of this section, he shall report his findings with instructions in writing to the trustees or directors, who shall, within 30 days after receiving such report, cause the institution to comply with the report and instructions.
Source. 1981, 173:1. 1988, 220:4. 2004, 231:6, eff. June 11, 2004.