KRS 41.465: Annual financial statement audit.

(1) (a) The commission shall annually procure a financial statement audit of all funds

and accounts within its control.

(b) The audit shall be conducted in accordance with generally accepted

government auditing standards.

(2) (a) The commission shall not enter int o any contract with a certified public

accountant for an audit unless the Auditor of Public Accounts has:

1. Declined in writing to perform the audit; or

2. Failed to respond within fifteen (15) days of receipt of a written request

for an audit.

(b) If the Auditor of Public Accounts performs the annual audit required in

subsection (1) of this section, the Auditor of Public Accounts shall maintain a

record of all expenses incurred, including time worked on the audit, and these

expenses shall be charged to the commission.

(c) If the Auditor of Public Accounts does not perform the annual audit, any

contract with a certified public accountant shall specify the following:

1. The certified public accountant shall forward a copy of the audit report

and management l etters to the Auditor of Public Accounts and to the

Legislative Research Commission; and

2. The Auditor of Public Accounts shall have the right to review the

certified public accountant's work papers.