Some CPA Firms May be Prevented From Auditing Banks

Federal regulatory agencies including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation (FDIC) are asking for public comment on proposed rules that would enable the regulators to remove, suspend, or bar an accountant or an accounting firm from performing audit and attestation services for certain financial institutions.

The proposed rules suggest that, with good cause, accountants and accounting firms may be prevented from providing audit and attestation services for insured depository institutions with assets of $500 million or more.

Good cause is defined to include violations of law or professional standards, negligence, or lack of qualifications.

Joining with the other agencies in issuing these proposed guidelines are the Office of the Comptroller of the Currency and the Office of Thrift Supervision.

You can read the entire action entitled Removal, Suspension, and Disbarment of Accountants From Performing Audit Services. Comments should be submitted to:

Public Information Room
Office of the Comptroller of the Currency
250 E Street, SW, Mailstop 1-5
Washington, DC, 20219
Attention Docket No. 02-15.

In addition, comments may be sent by fax to (202) 874-4448, or by electronic mail to regs.comments@occ.treas.gov.

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