Sec. 2.
(a) An
independent certified public accountant or independent certified public
accounting firm selected to perform a financial statement audit must meet the
following qualifications and must affirm that it meets these qualifications as
part of a written agreement with the casino licensee to perform the audit:
(1) Be independent with respect to the casino
licensee, its parents, and investors. Standards of independence are to be
determined by pronouncements of the American Institute of Certified Public
Accountants and the Securities and Exchange Commission.
(2) Be licensed to practice in
Indiana.
(3) Have sufficient
experience in the gaming industry or related industries.
(4) Have an adequate number of professional
personnel to meet the requirements of the engagement in a timely and efficient
manner.
(b) An
independent certified public accountant or independent certified public
accounting firm selected to perform a financial statement audit must not
express an opinion on financial statements of a casino licensee unless it is
independent from that casino licensee. Impairments to independence include, but
are not limited to, the following:
(1) During
the period of the professional engagement to perform an audit, or at the time
the opinion was issued, the auditing person:
(A) had or was committed to acquire any
direct or material indirect financial interest in the casino
licensee;
(B) was a trustee of any
trust or executor or administrator of any estate if the trust or estate had or
was committed to acquire any direct or material indirect financial interest in
the casino licensee;
(C) had any
joint closely held business investment with the casino licensee or any key
person or substantial owner thereof that was material in relation to the
auditing person or the auditing person's firm's net worth; or
(D) had any loan to or from the casino
licensee or any key person or substantial owner thereof, when made under normal
lending procedures, terms, and requirements, except:
(i) loans that are not material to the net
worth of the borrower;
(ii) home
mortgages; and
(iii) other secured
loans, except loans guaranteed by the auditing person's firm that are otherwise
unsecured.
(2)
During the period covered by the casino licensee's financial statements, during
the period of the professional engagement to perform an audit, or at the time
the opinion is issued, the auditing person was:
(A) connected with the casino licensee as a
promoter, underwriter, voting trustee, key person, or in any capacity
equivalent to that of a key person or employee; or
(B) a trustee for any pension or
profit-sharing trust of the casino licensee.
(3) Functioning as if a key person of the
casino licensee.
(4) Performing an
audit of the independent certified public accountant or independent certified
public accounting firm's own work.
(5) Advocacy for the casino
licensee.
(6) Having any other role
with the casino licensee or affiliates other than as the independent
auditor.
