The Federal Deposit Insurance Corporation (FDIC) has proposed amendments to Part 363 of its regulations, which sets forth annual independent audit and reporting requirements for insured institutions with $500 million or more in total assets. Among other provisions, the FDIC’s proposal would:
- Require disclosure of the internal control framework used and material weaknesses identified;
- Require management's assessment of compliance with laws and regulations to disclose any noncompliance;
- Clarify the independence standards applicable to accountants;
- Require certain communications by the accountant to audit committees;
- Extend the annual report filing deadline for non-public institutions and include a late filing notification requirement;
- Specify the audit committee's duties regarding the independent public accountant, require audit committees to ensure that audit engagement letters do not contain unsafe and unsound limitation of liability provisions, and require boards of directors to apply written criteria for evaluating audit committee members' independence; and
- Revise the criteria for institutions to comply with Part 363 at a holding company level.
The proposal is available for comments until January 31, 2008 at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-21168.pdf.
|
