58-43-16.12. Coercion, manipulation, or fraudulent influence of accountant prohibited.
No officer or director of an insurer, or any other person acting under the direction thereof, shall directly or indirectly take any action to coerce, manipulate, mislead, or fraudulently influence any accountant engaged in the performance of an audit pursuant to this chapter if that person knew or should have known that the action, if successful, could result in rendering the insurer's financial statements materially misleading.
These actions include:
(1)To issue or reissue a report on an insurer's financial statements that is not warranted in the circumstances (due to material violations of statutory accounting principles prescribed by the director, generally accepted auditing standards, or other professional or regulatory standards);
(2)To fail to perform audit, review, or other procedures required by generally accepted auditing standards or other professional standards;
(3)To fail to withdraw an issued report; or
(4)To fail to communicate matters to an insurer's audit committee.
Source: SL 2009, ch 271, §27.
Structure South Dakota Codified Laws
Chapter 43 - Independent Audit Of Insurers
Section 58-43-1 - Definition of terms.
Section 58-43-3 - Foreign or alien insurers--Exemption.
Section 58-43-4 - Annual audited financial report--Contents.
Section 58-43-5 - Financial statements.
Section 58-43-5.1 - Examination of financial statements by accountant.
Section 58-43-6 - Registration of retained accountant--Letter of acknowledgment from accountant.
Section 58-43-9 - Qualifications of accountant.
Section 58-43-9.1 - Disqualification of accountant.
Section 58-43-9.3 - Exemption from disqualification provisions of § 58-43-9.2.
Section 58-43-9.4 - Services which do not disqualify accountant--Audit committee preapproval.
Section 58-43-9.6 - Delegation of preapproval duties.
Section 58-43-10 - Rotation of accountant--Application for relief from rotation requirement.
Section 58-43-11 - Rejection of accountant or audited financial report--Grounds.
Section 58-43-12 - Disqualification hearing.
Section 58-43-16.1 - Applicability of §§ 58-43-16.2 to 58-43-16.9.
Section 58-43-16.2 - Responsibilities of audit committee.
Section 58-43-16.3 - Membership of audit committee.
Section 58-43-16.4 - Independence of audit committee members.
Section 58-43-16.6 - Election of controlling person to designate audit committee.
Section 58-43-16.7 - Report of accountant to audit committee.
Section 58-43-16.8 - Report of accountant where insurer is member of holding company system.
Section 58-43-16.9 - Criteria for proportion of audit committee members.
Section 58-43-16.10 - Hardship waiver of requirements of §§ 58-43-16.2 to 58-43-16.9, inclusive.
Section 58-43-16.12 - Coercion, manipulation, or fraudulent influence of accountant prohibited.
Section 58-43-16.15 - Certain insurers required to file Section 404 report and addendum.
Section 58-43-16.16 - Contents of Management's Report of Internal Control over Financial Reporting.
Section 58-43-16.18 - Discretion of management as to internal control framework and documentation.
Section 58-43-16.20 - Compliance of insurers retaining independent accountant on July 1, 2009.
Section 58-43-16.22 - Compliance of foreign insurers.
Section 58-43-16.23 - Applicability of §§ 58-43-10 and 58-43-16.2 to 58-43-16.10 .
Section 58-43-16.24 - Applicability of §§ 58-43-16.13 to 58-43-16.19.
Section 58-43-16.25 - Internal audit function requirements.
Section 58-43-16.26 - Internal audit function to be organizationally independent.
Section 58-43-16.27 - Report of head of internal audit function to audit committee.
Section 58-43-16.28 - Member of insurance holding company system or group of insurers.
Section 58-43-16.29 - Exemption from internal audit function requirements.
Section 58-43-18 - Workpapers.
Section 58-43-20 - Hardship exemption--Hearing.
Section 58-43-22 - Application to Canadian and British insurers.
Section 58-43-23 - Fine, suspension, or revocation of license for violation.
Section 58-43-24 - Promulgation of rules by director.
Section 58-43-25 - Application of chapter.
Section 58-43-26 - Dispute resolution by mediation or arbitration.