TITLE 68: PROFESSIONS AND OCCUPATIONS
CHAPTER VIII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
SUBCHAPTER b: PROFESSIONS AND OCCUPATIONS
PART 1450 REAL ESTATE LICENSE ACT OF 2000
SECTION 1450.925 AUDITS OF SPECIAL FUNDS BY OUTSIDE AUDITORS
Section 1450.925 Audits of Special Funds by Outside Auditors
a) General Rule. The Division may cause audits of special accounts of sponsoring brokers licensed certified public accountants as set forth in this Section.
b) Basis for Audit. Upon receipt of a complaint from the public, information from another regulatory or law enforcement agency, or other evidence any of which causes the Division to reasonably believe that escrow moneys required to be kept in a special account have been misappropriated, the Division may contract with a licensed certified public accountant to audit a sponsoring broker's special accounts.
c) Definitions. For the purposes of this Section, these terms shall be defined as follows:
1) Reasonably Believe. The complaints, information or evidence available to the Division are of a nature or have sufficient credibility that a prudent person in the exercise of good judgment would reasonably rely or act upon that information or evidence.
2) Misappropriated or Misappropriation. The use of escrow moneys for a purpose other than that for which the escrow moneys were deposited or that is permitted by the Act, this Part or the agreements regarding escrow moneys. The mere failure to follow the provisions of Section 1450.750, dealing with the deposit and accounting for escrow moneys, shall not constitute misappropriation.
3) Escrow Moneys. Shall have the same definition as set forth in Section 1-10 of the Act.
d) Notice of Audit. The Division shall notify in writing the sponsoring broker responsible for the special accounts that an auditor has been retained to audit the special accounts, the identity of the auditor or auditing firm and that the sponsoring broker shall submit all pertinent records for audit within 30 days after the written notice.
e) Procedures for Audit. The auditor or the Division shall contact the sponsoring broker responsible for the special accounts to schedule the audit of the special accounts. The sponsoring broker shall provide the records requested at the scheduled time and location or as otherwise agreed by the sponsoring broker and the auditor or the Division.
f) Written Report. Any licensed certified public accountant performing an audit for the Division under the provisions of this Section and the Act shall provide a written report to the Division, with a copy to the sponsoring broker, detailing the findings of the auditor with specific reference to compliance with the special account requirements of the Act and this Part.
g) Noncompliance and Cost of Audit. The sponsoring broker shall be liable for the cost of the audit if an order is issued by the Director, as set forth in Section 20-60 of the Act, finding that escrow moneys were misappropriated by the sponsoring broker or the sponsoring broker's employees, independent contractors, agents or designees.
(Source: Amended at 40 Ill. Reg. 12588, effective September 2, 2016)