6-841. Internal control structure; definition
85 words·~1 min read·
/az/title-6/6-841A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. An escrow agent shall adopt a systematic internal control structure to ensure that persons employed by or associated with the escrow agent's business do not make significant errors or perpetuate significant irregularities or fraud without timely detection.
B. For purposes of this section, "internal control structure" means the policies and procedures established to provide reasonable assurance that the escrow agent will achieve the following objectives:
1. Safeguarding of the customers' assets.
2. Reliability in financial reporting.
3. Reliability in recording of all escrow transactions.