NRS463.157. Regulations concerning financial practices of licensees: Minimum procedures for control of internal fiscal affairs of nonrestricted licensees; internal audits.

  The Commission shall by regulation:

      1.  Prescribe minimum procedures for adoption by each nonrestricted licensee to exercise effective control over its internal fiscal affairs, which must include, but are not limited to, provisions for:

      (a) The safeguarding of its assets and revenues, especially the recording of cash and evidences of indebtedness; and

      (b) The provision of reliable records, accounts and reports of transactions, operations and events, including reports to the Board and the Commission.

      2.  Provide for the adoption and use of internal audits, whether by qualified internal auditors or by accountants holding a permit to practice public accounting, in the case of each nonrestricted licensee whose operation equals or exceeds a specified size. The regulations or any standards adopted pursuant to such regulations must, if the stock of the nonrestricted licensee is publicly traded, preclude internal audits by the same independent accountant hired to provide audits, compiled statements or reviews of the financial statements required by NRS 463.159. As used in this subsection, “internal audit” means a type of control which operates through the testing and evaluation of other controls and which is also directed toward observing proper compliance with the minimum standards of control prescribed pursuant to subsection 1.

      (Added to NRS by 1967, 1277; A 2003, 20th Special Session, 273)