[Code of Federal Regulations]
[Title 47, Volume 3]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 47CFR64.904]

[Page 285-286]
 
                       TITLE 47--TELECOMMUNICATION
 
        CHAPTER I--FEDERAL COMMUNICATIONS COMMISSION (CONTINUED)
 
PART 64_MISCELLANEOUS RULES RELATING TO COMMON CARRIERS--Table of Contents
 
                      Subpart I_Allocation of Costs
 
Sec.  64.904  Independent audits.

    (a) Each carrier required to file a cost allocation manual shall 
elect to either have an attest engagement performed by an independent 
auditor every two years, covering the prior two year period, or have a 
financial audit performed by an independent auditor every two years, 
covering the prior two year period. In either case, the initial 
engagement shall be performed in the calendar year after the carrier is 
first required to file a cost allocation manual.
    (b) The attest engagement shall be an examination engagement and 
shall provide a written communication that expresses an opinion that the 
systems, processes, and procedures applied by the carrier to generate 
the results reported pursuant to Sec.  43.21(e)(2) of this chapter 
comply with the Commission's Joint Cost Orders issued in conjunction 
with CC Docket No. 86-111, the Commission's Accounting Safeguards 
proceeding in CC Docket No. 96-150, and the Commission's rules and 
regulations including Sec. Sec.  32.23 and 32.27 of this chapter, and 
Sec.  64.901, and Sec.  64.903 in force as of the date of the auditor's 
report. At least 30 days prior to beginning the attestation engagement, 
the independent auditors shall provide the Commission with the audit 
program. The attest engagement shall be conducted in accordance with the 
attestation standards established by the American Institute of Certified 
Public Accountants, except as otherwise directed by the Chief, 
Enforcement Bureau.
    (c) The biennial financial audit shall provide a positive opinion on 
whether the applicable date shown in the carrier's annual report 
required by

[[Page 286]]

Sec.  43.21(e)(2) of this chapter present fairly, in all material 
respects, the information of the Commission's Joint Cost Orders issued 
in conjunction with CC Docket No. 86-111, the Commission's Accounting 
Safeguards proceeding in CC Docket No. 96-150, and the Commission's 
rules and regulations including Sec. Sec.  32.23 and 32.27 of this 
chapter, and Sec.  64.901, and Sec.  64.903 in force as of the date of 
the auditor's report. The audit shall be conducted in accordance with 
generally accepted auditing standards, except as otherwise directed by 
the Chief, Enforcement Bureau. The report of the independent auditor 
shall be filed at the time that the carrier files the annual reports 
required by Sec.  43.21(e)(2) of this chapter.

[67 FR 5702, Feb. 6, 2002, as amended at 67 FR 13229, Mar. 21, 2002]