The federal bank and thrift regulatory agencies today issued
final rules governing their authority to take disciplinary actions against
independent public accountants and accounting firms that perform audit and
attestation services required by section 36 of the Federal Deposit Insurance Act. Proposed rules were published for comment in
the Federal Register in January 2003.
The final rules, which take effect on October 1, 2003,
establish procedures under which the agencies can, for good cause, remove,
suspend, or bar an accountant or firm from performing audit and attestation
services for insured depository institutions with assets of $500 million or
more. The rules permit immediate
suspensions in limited circumstances.
The rules provide that certain violations of law, negligent
conduct, reckless violations of professional standards or lack of
qualifications to perform auditing services may be considered good cause to
remove, suspend or bar an accountant or firm from providing audit services for
banking organizations subject to section 36.
Also, the rules prohibit an accountant or accounting firm from
performing audit services if the accountant or firm has been removed,
suspended, or debarred by one of the agencies, or if the U.S. Securities and Exchange
Commission or the Public Company Accounting Oversight Board has taken certain
disciplinary action against the accountant or firm.
The rules are being issued by the Board of Governors of the
Federal Reserve System, the Federal Deposit Insurance Corporation, the Office
of the Comptroller of the Currency and the Office of Thrift Supervision. The rules amend each agencys rules of
practice separately, but are substantively identical.
Attachment
Media Contacts
Federal Reserve Dave Skidmore (202) 452-2955
FDIC David Barr (202) 898-6992
OCC Dean DeBuck (202) 874-5770
OTS Chris Smith (202) 906-6677