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CONTINENTAL BANK TO INTEGRATE EXTERNAL AND INTERNAL AUDITING FUNCTIONS BY EXPANDING RELATIONSHIP WITH PRICE WATERHOUSE

 Bank Team Will Retain Overall Management Control
 CHICAGO, Feb. 25 /PRNewswire/ -- Continental Bank (NYSE: CBK) will


integrate its external and internal audit functions by expanding its relationship with Price Waterhouse, the bank's outside auditor since 1985, it announced today.
 Under the plan, about 20 members of the bank's 72-person audit unit will remain with the bank to oversee the strategy and scope of the bank's internal audit, serve as liaison with regulators and support the ongoing design of management controls. While final details are yet to be worked out, substantially all of the other Continental audit staff members are expected to join Price Waterhouse, ensuring a smooth transition and effectively integrating the internal and external functions.
 "This approach keeps Continental's board of directors and management in total control of the audit function," said Richard J. Anderson, Continental's general auditor. "Price Waterhouse will be principally responsible for day-to-day execution of the internal audit function and retain the external role which the firm has handled with distinction for the last eight years."
 Regulatory requirements imposed by the Federal Deposit Insurance Corporation Improvement Act (FDICIA) in part prompted the bank to consider the new approach, Anderson said.
 "The FDICIA requirements place greater responsibility on the external auditor, which we anticipated would have caused more duplication of effort and higher costs," said Anderson. "With Price Waterhouse, we've developed a carefully structured approach that will maintain the high quality of our program while facilitating coordination and reducing costs."
 Continental requested proposals in early January from KPMG Peat Marwick, and Deloitte & Touche in addition to Price Waterhouse in order to fully examine costs and creative approaches. "All three proposals were extremely competitive and would have served us well. Price Waterhouse's plan was the most attractive, however, because of the competitiveness and overall structure of their proposal," Anderson said.
 Continental's board of directors has approved the plan, and assuming Price Waterhouse's appointment as independent accountant is approved by stockholders at Continental's annual meeting on April 26, the arrangement would take effect with Continental's 1993 audit.
 NOTES:
 1) Continental Bank Corp. is a bank holding company that focuses on meeting the capital and financial management needs of public and privately held businesses nationwide. Through its subsidiaries, the company provides business financing, specialized financial and operating services and private banking services. Continental also engages in equity finance and investing, as both principal and arranger, and international trading, for customers and its own account.
 2) Price Waterhouse is a leading worldwide professional services organization of business advisers, accountants, and tax and management consultants. Through a global network of firms practicing in 453 offices in 113 countries and territories, Price Waterhouse professionals provide advisory services to businesses, individuals, non-profit organizations, and government entities. The U.S. firm, with 12,480 men and women in more than 100 offices, is part of the worldwide organization.
 -0- 2/25/93
 /CONTACT: William Murschel of Continental Bank, 312-923-5130; or Donald E. Stephan of Price Waterhouse, 312-540-2680/
 (CBK)


CO: Continental Bank ST: Illinois IN: FIN SU:

WB -- NY026 -- 0307 02/25/93 10:32 EST
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Publication:PR Newswire
Date:Feb 25, 1993
Words:510
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