Requests for Comment Regarding Removal, Suspension, and Debarment of Accountants From Performing Audit

Federal Reserve Bank Of Dallas

Informations

• Publié par: Zoed
• Nombre de lectures: 12
• Langue: English

Extrait

Federal Reserve Bank
ll★K
of Dallas
DALLAS, TEXAS
75265-5906January 24, 2003
Notice 03-01
TO: The Chief Executive Officer of each
financial institution and others concerned
in the Eleventh Federal Reserve District
SUBJECT
Requests for Comment Regarding Removal,
Suspension, and Debarment of Accountants From
Performing Audit Services
DETAILS
The Board of Governors, the Office of the Comptroller of the Currency, the Federal
Deposit Insurance Corporation, and the Office of Thrift Supervision have requested comment on
a proposal to revise their respective rules of practice pursuant to Section 36 of the Federal
Deposit Insurance Act (FDIA) (12 U.S.C. 1831m).
Congress gave the agencies authority to remove, suspend, or debar accountants from
performing the audit services required by Section 36 if there is good cause to do so. This
proposal would amend the agencies’ rules to establish rules of practice and procedure for the
removal, suspension, and debarment of accountants and their firms from performing Section 36
audit services for insured depository institutions. The proposal reflects the agencies’ increasing
concern with the quality of audits and internal controls for financial reporting at insured
depository institutions.
Although there have been few bank and thrift failures in recent years, the circum-
stances of the failures that have occurred illustrate the importance of maintaining high quality in
the audits of the financial position and attestations of management assessments of insured
depository institutions. The proposed regulations enhance the agencies’ ability to address
misconduct by accountants who perform annual audit and attestation services.
The Board must receive comments by March 10, 2003. Please address comments to
Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution
For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal
Reserve Bank of Dallas: Dallas Office [phone]; El Paso Branch Intrastate [phone], Interstate [phone];
Houston Branch Intrastate [phone], Interstate [phone]; San Antonio Branch Intrastate [phone].- 2 -
Avenue, N.W., Washington, DC 20551. Also, you may mail comments electronically to
[e-mail]. All comments should refer to Docket No. R-1139.
AT TACHMENT
A copy of the agencies’ notice as it appears on pages 1116–30, Vol. 68, No. 5 of the
Federal Register dated January 8, 2003, is attached.
MORE INFORMATION
For more information, please contact Gayle Teague, Banking Supervision Depart-
ment, [phone]. Paper copies of this notice or previous Federal Reserve Bank notices can
be printed from our web site at http://www.dallasfed.org/banking/notices/index.html.Wednesday,
January 8, 2003
Part III
Department of the Treasury
Office of the Comptroller of the
Currency
12 CFR Part 19
Board of Governors of the
Federal Reserve System
12 CFR Part 263
Federal Deposit Insurance
Corporation
12 CFR Part 308
Department of the Treasury
Office of Thrift Supervision
12 CFR Part 513
Removal, Suspension, and Debarment of
Accountants From Performing Audit
Services; Proposed Rule
VerDate Dec<13>2002 15:48 Jan 07, 2003 Jkt 200001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\08JAP3.SGM 08JAP31116 Federal Register/Vol. 68, No. 5/Wednesday, January 8, 2003/Proposed Rules
public accountant (accountant) and FDIC: Written comments should be DEPARTMENT OF THE TREASURY
include the accountant’s audit and addressed to Robert E. Feldman,
attestation reports in its annual report. Executive Secretary, Attention: Office of the Comptroller of the
Comments, Federal Deposit Insurance Currency Congress gave the Agencies authority
Corporation, 550 17th Street, NW, to remove, suspend, or debar
Washington, DC 20429. Commenters are 12 CFR Part 19 accountants from performing the audit
encouraged to submit comments by services required by section 36 if there
[Docket No. 02–15] facsimile transmission to FAX number is good cause to do so. This proposal
(202) 898–3838 or by electronic mail to would amend the Agencies’ rules to RIN 1557–AB43
[e-mail]. Comments also establish rules of practice and procedure
may be hand delivered to the guard BOARD OF GOVERNORS OF THE for the removal, suspension, and
station at the rear of the 550 17th Street FEDERAL RESERVE SYSTEM debarment of accountants and their
Building (located on F Street), on firms from performing section 36 audit
business days between 8:30 am and 5 12 CFR Part 263 services for insured depository
p.m. Comments may be inspected and institutions. The proposal reflects the
[Docket No. R–1139] photocopied in the FDIC Public Agencies’ increasing concern with the
Information Center, Room 100, 801 17th quality of audits and internal controls FEDERAL DEPOSIT INSURANCE
Street, NW, Washington, DC, between 9 for financial reporting at insured CORPORATION
am and 4:30 p.m. on business days. depository institutions. Although there
OTS: Mail: Send comments to have been few bank and thrift failures 12 CFR Part 308
Regulation Comments, Chief Counsel’s in recent years, the circumstances of the
RIN 3064–AC57 Office, Office of Thrift Supervision, failures that have occurred illustrate the
1700 G Street, NW., Washington, DC importance of maintaining high quality
DEPARTMENT OF THE TREASURY 20552, Attention No. 2002–58. in the audits of the financial position
Delivery: Hand deliver comments to and attestations of management
Office of Thrift Supervision the Guard’s Desk, East Lobby Entrance, assessments of insured depository
1700 G Street, N.W. from 9 a.m. to 4 institutions. The proposed regulations
12 CFR Part 513 p.m. on business days, Attention: enhance the Agencies’ ability to address misconduct by accountants who [No. 2002–58]
Office, Attention No. 2002–58. perform annual audit and attestation
RIN 1550–AB53 Facsimiles: Send facsimile services.
transmissions to FAX Number (202)
Removal, Suspension, and Debarment DATES: Comments must be received by 906–6518, Attention Docket No. 2002–
of Accountants From Performing Audit March 10, 2003. 58.
Services E-mail: Send e-mails to ADDRESSES:
<[e-mail]>, OCC: Please direct comments to: AGENCIES: Office of the Comptroller of
Attention Docket No. 2002–58 and Public Information Room, Office of the the Currency (OCC), Treasury; Board of
include your name and telephone Comptroller of the Currency, 250 E Governors of the Federal Reserve
number. Due to temporary disruptions Street, SW, Mailstop 1–5, Washington, System (Board); Federal Deposit
in mail service in the Washington, D.C. DC 20219, Attention Docket No. 02–15. Insurance Corporation (FDIC); and
area, commenters are encouraged to Comments are available for inspection Office of Thrift Supervision (OTS),
send comments by fax or e-mail if and photocopying at that address. You Treasury.
possible. can make an appointment to inspect the
ACTION: Joint notice of proposed Public Inspection: Interested persons comments by calling (202) 874–5043. In rulemaking. may inspect comments at the Public addition, comments may be sent by
Reading Room, 1700 G St. NW., from 10 facsimile transmission to (202) 874–SUMMARY: The OCC, Board, FDIC, and
a.m. until 4 p.m. on business days by 4448, or by electronic mail to OTS (each an Agency, and collectively,
appointment or obtain comments and/or [e-mail]. Due to the Agencies) propose to revise their
an index of comments by facsimile by delays in paper mail delivery in the respective rules of practice pursuant to
telephoning the Public Reading Room at Washington area, commenters are section 36 of the Federal Deposit
(202) 906–5922 from 9 a.m. until 5 p.m. encouraged to use fax or e-mail delivery, Insurance Act (FDIA) (12 U.S.C. 1831m).
on business days. Comments and the if possible. Section 36, as implemented by 12 CFR
related index will also be posted on the part 363, requires that each insured Board: Comments should refer to
OTS Internet site at <http://depository institution with total assets Docket No. R–1139 and may be mailed
www.ots.treas.gov>.of $500 million or more produce an to Secretary, Board of Governors of the
annual report containing the Federal Reserve System, 20th Street and FOR FURTHER INFORMATION CONTACT:
institution’s financial statements and Constitution Avenue, NW., Washington, OCC: Mitchell Plave, Counsel,
certain management assessments. The DC 20551; sent by FAX to (202) 452– Legislative and Regulatory Activities
depository institution must provide the 3819 or (202) 452–3102; or sent by e- Division, (202) 874–5090; Richard
report to the FDIC, the appropriate mail to Shack, Senior Accountant, Office of
Federal banking agency, and any [e-mail]. the Chief Accountant, (202) 874–4911;
appropriate state bank supervisor. Members of the public may inspect and Karen Besser, National Bank
Section 36 also requires that the comments in Room MP–500 between 9 Examiner, Special Supervision/Fraud,
depository institution obtain an audit of a.m. and 5 p.m. on weekdays pursuant (202) 874–4464.
its financial statements and an to section 261.12 (except as provided in Board: Richard Ashton, Associate
attestation on management’s