A. The records of each escrow agent shall be audited at least once each fiscal year by a certified public accountant. The audit shall include an audit of the escrow, account servicing and subdivision trust activities of the escrow agent and shall follow generally accepted accounting principles. A copy of the audit report shall be filed with the superintendent not more than one hundred twenty days after the end of the escrow agent's fiscal year. The audit requirement may be satisfied by filing a copy of the audit report, which is prepared by a certified public accountant, of the parent of the escrow agent including an audit of the escrow, account servicing and subdivision trust activities of the escrow agent within the prescribed time period. The superintendent may extend the time period in this subsection up to ninety days for good cause shown.
B. At the time required by the superintendent, every escrow agent shall make and file in the office of the superintendent a true and correct report, in the form and containing the data the superintendent may require, of the business of the agent, including the agent's escrow, account servicing and subdivision trust activities. Every agent shall reply promptly in writing to an inquiry from the superintendent concerning the escrow agent's business.
C. The scope of the audit shall include consideration of the escrow agent's internal control structure in accordance with generally accepted auditing standards. A separate report shall be submitted to the superintendent if reportable conditions are identified that indicate significant deficiencies in the design or operation of the internal control structure of the escrow agent which would adversely affect the agent's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. If reportable conditions are identified, the report on reportable conditions shall recommend specific measures to improve the escrow agent's internal control structure.