Final rules issued on disciplinary actions against accountants and accounting firms performing certain audit services.
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, of bar an accountant or firm from providing audit services for banking organizations subject to section 36. Also, the rules prohibit an accountant of 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 actions 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 agency's rules of practice separately but are substantively identical.
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|Publication:||Federal Reserve Bulletin|
|Article Type:||Brief Article|
|Date:||Sep 1, 2003|
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