2015 New York Laws
PML - Racing, Pari-Mutuel Wagering and Breeding Law
Article 2 - (Racing, Pari-Mutuel Wagering and Breeding Law) THOROUGHBRED RACING AND BREEDING
240 - Yearly audit.

  240.  Yearly audit. 1. The franchised corporation shall, at its own
  expense,  cause  its  annual  financial  statements  to  be  audited  in
  accordance  with  generally  accepted  auditing standards by a qualified
  independent  certified  public  accountant  approved  by  the  franchise
  oversight  board. The annual financial statements shall be prepared on a
  comparative basis for the  current  and  prior  fiscal  year  and  shall
  present  the  financial position and results of operations in conformity
  with generally accepted  accounting  principles.  Three  manually-signed
  copies  of  the  audited  financial statements, together with the report
  thereon of the franchised  corporation's  independent  certified  public
  accountant  shall be filed: one with the board, one with such franchised
  corporation and one with the office of the attorney general,  not  later
  than  ninety  days following the end of the fiscal year. All such annual
  financial statements and yearly audits shall be subject to audit by  the
  state comptroller and shall be public records.
2.  The franchised corporation shall require the independent certified
  public accountant to render the following additional reports:
a. a report on material weakness in accounting, internal controls, and
  business and management practices discovered in the ordinary  course  of
  preparing  such audited financial statements. Whenever in the opinion of
  the independent certified public accountant  there  exists  no  material
  weaknesses  in accounting, internal controls and business and management
  practices, no report will be required; and
b. a report expressing the opinion of the independent certified public
  accountant that based on his examination of the financial statements the
  franchised corporation has followed, in all  material  respects,  during
  the  period  covered  by  his  examination, the system of accounting and
  internal control as filed with the board. Whenever in the opinion of the
  independent certified public accountant the franchised  corporation  has
  deviated  from the system of accounting and internal controls filed with
  the board or the accounts, records, and control procedures examined  are
  not   maintained  by  the  franchised  corporation  in  accordance  with
  generally accepted accounting standards the report shall enumerate  such
  deviations.  The  independent  certified  public  accountant  shall also
  report on areas of the system no longer considered effective, and  shall
  make  recommendations in writing regarding improvements in the system of
  accounting and internal controls.
3. If the independent certified public accountant who  was  previously
  engaged  to  audit  the  franchised  corporation's  financial statements
  resigns or is dismissed as  the  franchised  corporation's  auditor,  or
  another  independent  certified public accountant is engaged as auditor,
  the franchised corporation shall file a report with the board within ten
  days following the end of the month in which such event occurs,  setting
  forth the following:
a. the date of such resignation, dismissal, or engagement;
b.  whether in connection with the audits of the two most recent years
  preceding such resignation, dismissal,  or  engagement  there  were  any
  disagreements  with  the  former  accountant on any matter of accounting
  principles or practices, financial  statement  disclosure,  or  auditing
  scope   or  procedure,  which  disagreements  if  not  resolved  to  the
  satisfaction of the former accountant would  have  caused  him  to  make
  reference  in  connection  with  his report to the subject matter of the
  disagreement; including a description of  each  such  disagreement.  The
  disagreements  to  be  reported  include  those  resolved  and those not
  resolved; and
c. whether the former accountant's report on the financial  statements
  for any of the past two years contained an adverse opinion or disclaimer

  of  opinion  or  was  qualified.  The  nature  of  such adverse opinion,
  disclaimer of opinion, or qualification shall be described.
4.  Upon  direction of the board, the franchised corporation shall, at
  its own expense, cause its  business  and  managerial  practices  to  be
  audited.