Okla. Stat. tit. 70, § 70-22-104: Standards - Qualifications of accountants - Liability

insurance.

A. 1. The audit of the financial statements and compliance

requirements of each public school district shall be made in

accordance with auditing standards generally accepted in the United

States as defined by the American Institute of Certified Public

Accountants or its successor organization and shall comply with the

most recent Government Auditing Standards issued by the United

States Government Accountability Office.

2. The auditor’s opinions shall state whether the financial

statements of the school district were prepared in accordance with:

a. accounting principles generally accepted in the United

States, or

b. accounting and financial reporting regulations

prescribed or permitted by the State Department of

Education,

3. The auditor shall also report in accordance with:

a. Government Auditing Standards on the school district’s

internal control over financial reporting and

compliance with certain provisions of laws,

regulations, contracts, grant agreements and other

matters, and

b. the United States Office of Management and Budget

Circular A-133, as required.

B. All firms, as defined by the Oklahoma Accountancy Act,

before entering into audit contracts required pursuant to the

Oklahoma Public School Audit Law, shall satisfy the State Auditor

and Inspector that the registrant, as defined by the Oklahoma

Accountancy Act, has an individual responsible for the audits of

school districts who:

1. Has at least two (2) years of experience auditing public

entities;

2. Has completed a minimum of eight (8) clock hours of

continuing education credit in school district accounting and

auditing as defined by the Governmental Accounting Standards Board

(GASB) and the Office of the Comptroller General during the prior

year; and

3. Is licensed by and is in good standing with the Oklahoma

Accountancy Board.

C. Firms shall submit their application to perform audits of a

school district with their most recent peer review, which must

include the audit of at least one school district, if the firm has

performed such an audit, and any letter of comment for approval or

disapproval by the State Auditor and Inspector for the current audit

year on or before the first day of January of each calendar year.

D. 1. Until June 30, 2014, all firms entering into audit

contracts required pursuant to the Oklahoma Public School Audit Law

shall carry a minimum of Two Hundred Fifty Thousand Dollars

($250,000.00) accountants' professional liability insurance or the

total amount of the budget being audited, whichever is less.

2. Beginning July 1, 2014, all firms entering into audit

contracts required pursuant to the Oklahoma Public School Audit Law

shall carry a minimum of Five Hundred Thousand Dollars ($500,000.00)

accountants’ professional liability insurance or the total amount of

the budget being audited, whichever is less.

3. Proof of such insurance shall be submitted to the State

Auditor and Inspector prior to entering into a contract.