# Conn. Gen. Stat. § 16-8: Sec. 16-8. Examination of witnesses and documents. Hearing officers. Management audits > Connecticut · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_CT_T16_C277_S16-8 ## Section - **Citation:** Conn. Gen. Stat. § 16-8 - **Heading:** Sec. 16-8. Examination of witnesses and documents. Hearing officers. Management audits - **Jurisdiction:** Connecticut - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Connecticut Code / Title 16 / Chapter 277 / Section 16-8 ## Text (b) (1) The authority may employ professional personnel to perform management audits. The authority shall promptly establish such procedures as it deems necessary or desirable to provide for management audits to be performed on a regular or irregular schedule on all or any portion of the operating procedures and any other internal workings of any public service company or person involved in the transportation of gas, as such terms are defined in section 16-280a , including the relationship between any public service company or person involved in the transportation of gas, as such terms are defined in section 16-280a , and a related holding company or subsidiary, consistent with the provisions of section 16-8c , provided no such audit shall be performed on a community antenna television company, except with regard to any noncable communications services which the company may provide, or when (A) such an audit is necessary for the authority to perform its regulatory functions under the Communications Act of 1934, 47 USC 151, et seq., as amended from time to time, other federal law or state law, (B) the cost of such an audit is warranted by a reasonably foreseeable financial, safety or service benefit to subscribers of the company which is the subject of such an audit, and (C) such an audit is restricted to examination of the operating procedures that affect operations within the state. (2) In any case where the authority determines that an audit is necessary or desirable, it may (A) order the audit to be performed by one of the management audit teams, (B) require the affected company or person to perform the audit utilizing the company's own internal management audit staff as supervised by designated members of the authority's staff or the person's own internal management audit staff as supervised by designated members of the authority's staff, or (C) require that the audit be performed under the supervision of designated members of the authority's staff by an independent management consulting firm selected by the authority, in consultation with the affected company or person. If the affected company or person has more than seventy-five thousand customers, such independent management consulting firm shall be of nationally recognized stature. All reasonable and proper expenses of the audits, including, but not limited to, the costs associated with the audit firm's testimony at a public hearing or other proceeding, shall be borne by the affected companies or persons and shall be paid by such companies or persons at such times and in such manner as the authority directs. (3) For purposes of this section, a complete audit shall consist of (A) a diagnostic review of all functions of the audited company or person, which shall include, but not be limited to, documentation of the operations of the company or person, assessment of the company's system of internal controls or assessment of the person's system of internal controls, and identification of any areas of the company or person which may require subsequent audits, and (B) the performance of subsequent focused audits identified in the diagnostic review and determined necessary by the authority. All audits performed pursuant to this section shall be performed in accordance with generally accepted management audit standards. The authority shall adopt regulations in accordance with the provisions of chapter 54 setting forth such generally accepted management audit standards. Each audit of a community antenna television company shall be consistent with the provisions of the Communications Act of 1934, 47 USC 151, et seq., as amended from time to time, and of any other applicable federal law. The authority shall certify whether a portion of an audit conforms to the provisions of this section and constitutes a portion of a complete audit. pted management audit standards. Each audit of a community antenna television company shall be consistent with the provisions of the Communications Act of 1934, 47 USC 151, et seq., as amended from time to time, and of any other applicable federal law. The authority shall certify whether a portion of an audit conforms to the provisions of this section and constitutes a portion of a complete audit. (4) A complete audit of each portion of each gas company, electric distribution company or water company having more than seventy-five thousand customers shall begin no less frequently than every six years, so that a complete audit of such a company's operations shall be performed every six years. Such an audit of each such company having more than seventy-five thousand customers shall be updated as required by the authority. (5) The results of an audit performed pursuant to this section shall be filed with the authority and shall be open to public inspection. Upon completion and review of the audit, if the person or firm performing or supervising the audit determines that any of the operating procedures or any other internal workings of the affected public service company or person involved in the transportation of gas, as such terms are defined in section 16-280a , are inefficient, improvident, unreasonable, negligent or in abuse of discretion, the authority may, after notice and opportunity for a hearing, order the affected public service company or person involved in the transportation of gas, as such terms are defined in section 16-280a , to adopt such new or altered practices and procedures as the authority shall find necessary to promote efficient and adequate service to meet the public convenience and necessity. The authority shall annually submit a report of audits performed pursuant to this section to the joint standing committee of the General Assembly having cognizance of matters relating to public utilities which report shall include the status of audits begun but not yet completed and a summary of the results of audits completed. Any such report may be submitted electronically. (6) All prudent, reasonable and proper costs and expenses, as determined by the authority, of complying with any order of the authority pursuant to this subsection shall be recognized by the authority for all purposes as proper business expenses of the affected company or person. Any costs or expenses, as determined by the authority, incurred by the company or person to address or remediate an inefficient, improvident, unreasonable, negligent or imprudent management or company practice identified in the course of the management audit shall not constitute prudent, reasonable and proper costs and expenses. (7) After notice and hearing, the authority may modify the scope and schedule of a management audit of a telephone company which is subject to an alternative form of regulation so that such audit is consistent with that alternative form of regulation. (c) Nothing in this section shall be deemed to interfere or conflict with any powers of the authority or its staff provided elsewhere in the general statutes, including, but not limited to, the provisions of this section and sections 16-7 , 16-28 and 16-32 , to conduct an audit, investigation or review of the books, records, plants and equipment of any regulated public service company or person involved in the transportation of gas, as such terms are defined in section 16-280a . See Sec. 52-260 re witness fees. Cited. 162 C. 51; 210 C. 349. Cited. 44 CS 21. ## Nearby sections - [Conn. Gen. Stat. § 16-1 Sec. 16-1. Definitions.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T16_C277_S16-1.md) - [Conn. Gen. Stat. § 16-2 Sec. 16-2. Public Utilities Regulatory Authority. Utility commissioners. Staff.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T16_C277_S16-2.md) - [Conn. Gen. Stat. § 16-2a Sec. 16-2a. Office of Consumer Counsel. Office of State Broadband. Consumer Counsel. Staff.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T16_C277_S16-2a.md) - [Conn. Gen. Stat. § 16-3 Sec. 16-3. Vacancy.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T16_C277_S16-3.md) - [Conn. Gen. Stat. § 16-5 Sec. 16-5. Removal.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T16_C277_S16-5.md) - [Conn. Gen. Stat. § 16-6a Sec. 16-6a. Participation in proceedings before federal agencies and federal courts. Expenses.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T16_C277_S16-6a.md) - [Conn. Gen. Stat. § 16-8 Sec. 16-8. Examination of witnesses and documents. Hearing officers. Management audits.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T16_C277_S16-8.md) - [Conn. Gen. Stat. § 16-8a Sec. 16-8a. Protection of employee of public service company, person involved in the transportation of gas, contractor or Nuclear Regulatory Commission from retaliation. Procedures. Regulations.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T16_C277_S16-8a.md) - [Conn. Gen. Stat. § 16-8b Sec. 16-8b. Labor disputes at public service companies. Determination of unreasonable profits during dispute. Refunds.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T16_C277_S16-8b.md) - [Conn. Gen. Stat. § 16-8c Sec. 16-8c. Examination of witnesses and documents. Audits. Relationship between public service companies and subsidiaries.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T16_C277_S16-8c.md) - [Conn. Gen. Stat. § 16-8d Sec. 16-8d. Recovery of costs, expenses, judgments or attorney's fees for an action brought under section 16-8a.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T16_C277_S16-8d.md) - [Conn. Gen. Stat. § 16-9 Sec. 16-9. Orders.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T16_C277_S16-9.md) - [Conn. Gen. Stat. § 16-9c Sec. 16-9c. Participation by stakeholder groups in proceedings pertaining to a gas, water, pipeline, electric distribution company or electric supplier. Compensation program. Independent evaluation of program.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T16_C277_S16-9c.md) - [Conn. Gen. Stat. § 16-10 Sec. 16-10. Enforcement of statutes and orders.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T16_C277_S16-10.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_CT_T16_C277_S16-8. Check the current official text before relying on it. Not legal advice.