OCC 2003-5
OCC BULLETIN	

Subject:      Removal, Suspension, and Debarment of Accountants 
              from Performing Annual Audit Services
Description:  Publication of Proposed Rule

Date:         February 10, 2003 

TO:  Chief Executive Officers of All National Banks, Federal 
     Branches and Agencies, Department and Division Heads, and All 
     Examining Personnel


The attached proposed rule concerns the removal, suspension, and 
debarment of accountants from performing annual audit and 
attestation services.  The proposal was published in the Federal 
Register on January 8, 2003.  Comments on the proposed rule are due 
by March 10.

Section 36 of the Federal Deposit Insurance Act (FDIA) requires that 
each national bank with $500 million or more in total assets submit 
an annual report on its financial statements and required management 
assessments to the OCC.  An independent public accountant must audit 
these financial statements to determine whether they are presented 
in accordance with generally accepted accounting principles.  

The proposed rule would amend 12 CFR 19 to establish rules of 
practice and procedure for the removal, suspension, and debarment 
of accountants from performing section 36 annual audit services.  It 
thus enhances the OCC’s ability to address misconduct by accountants 
who perform annual audit and attestation services.  The standards 
incorporated in the proposal are not new but are based on existing 
statutory, regulatory, and professional requirements, such as 
generally accepted auditing standards.  This proposal was issued 
jointly with the Board of Governors of the Federal Reserve System, 
the Federal Deposit Insurance Corporation, and the Office of Thrift 
Supervision.  The agencies’ proposals are substantively identical. 

For further information, contact Mitchell Plave, counsel, 
Legislative and Regulatory Activities Division at (202) 874-5090, 
or Richard Shack, senior accountant, Office of the Chief Accountant 
at (202) 874-4911. 



Julie L. Williams
First Senior Deputy Comptroller and Chief Counsel


Attachments: 
· 68 FR 1116
  [ http://www.occ.treas.gov/fr/fedregister/68fr1116.pdf ]
· 68 FR 4967 (Correction: 
              technical corrections to the FDIC and OTS reg. text)
  [ http://www.occ.treas.gov/fr/fedregister/68fr4967.pdf ]
· 68 FR 5075 (Correction: printing error on p. 1117)
  [ http://www.occ.treas.gov/fr/fedregister/68fr5075.pdf ]