(a) A state agency or statewide issue previously identified by the State Auditor as high risk shall be removed from the state high risk list if, based on an assessment, the State Auditor determines that significant progress has been made toward eliminating the basis on which the state agency or statewide issue was identified as high risk.

(b) The State Auditor may determine that significant progress has been made toward eliminating the basis on which a state agency or statewide issue was identified as high risk if, in the professional judgment of the State Auditor, either of the following has occurred:

(c) A state agency or the responsible agencies for a statewide issue shall have taken sufficient corrective actions upon substantial compliance with the following criteria:

(d) In unusual cases, even though a state agency or statewide issue remains high risk, the State Auditor may remove a state agency or statewide issue from the state high risk list when the State Auditor concludes, following an assessment, that the risk presented by the agency or statewide issue is not likely to be reduced by performing additional audit work.

(e) After removing a state agency or statewide issue from the state high risk list, the State Auditor shall maintain an awareness of the state agency or statewide issue and may perform a re-assessment of the agency or issue as part of the State Auditor's regular assessment of potential high-risk state agencies and statewide issues for the purpose of amending an existing state high risk list or establishing a new state high risk list. If the State Auditor determines, through application of the criteria set forth in California Code of Regulations, title 2, section 61013, that the removed state agency or statewide issue once again is deserving of being identified as high risk, the State Auditor may return the agency or issue to the state high risk list as provided by California Code of Regulations, title 2, section 61010, subdivision (e).