Audit of licensees; report to Legislature

1. The Commissioner shall cause to be conducted at least every 5 years an audit of all licensees. The Commissioner shall cause to be conducted each year on a random basis additional partial audits of any licensee who has a history of violations of the provisions of this chapter, or the regulations adopted pursuant thereto, as determined by the Commissioner. 2. The Commissioner shall require the use of standard auditing procedures and shall establish a manual to describe the standard auditing procedures. The manual must include, without limitation: (a) Specific audit objectives; (b) Standards for documentation; (c) Policies for supervisory review; (d) Policies for the training of auditors; (e) The format for the audit report; and (f) Procedures for the presentation, distribution and retention of the audit report. 3. On or before March 1 of each year, the Commissioner shall make a report of each audit to the Legislature, if it is in session, or to the Interim Finance Committee, if the Legislature is not in session.