The accountant shall furnish the insurer in connection with, and for inclusion in, the filing of the annual audited financial report, a letter stating the following:

1. (1) The accountant is independent with respect to the insurer and conforms to the standards of his or her profession as contained in the Code of Professional Conduct and pronouncements of the AICPA and the Code of Professional Conduct of the Arkansas State Board of Public Accountancy or similar code;

2. (2)

   1. (A) The accountant’s background and experience in general, and the experience in audits of insurers of the staff assigned to the engagement and whether each is an independent certified public accountant.
   2. (B) Nothing within this rule shall be construed as prohibiting the accountant from utilizing such staff as he or she deems appropriate where use is consistent with the standards prescribed by generally accepted auditing standards;
3. (3) The accountant understands the annual audited financial report and his or her opinion thereon will be filed in compliance with this rule and that the Insurance Commissioner will be relying on this information in the monitoring and regulation of the financial position of insurers;
4. (4) The accountant consents to the requirements of 23 CAR § 12-112 and that the accountant consents and agrees to make available for review by the commissioner, or the commissioner’s designee or appointed agent, the workpapers as defined in 23 CAR § 12-102;
5. (5) The accountant is properly licensed by an appropriate state licensing authority and is a member in good standing in the AICPA; and
6. (6) The accountant is in compliance with the requirements of 23 CAR § 12-106.

Codification Notes: "AICPA" means American Institute of Certified Public Accountants.