OCC 2005-21
OCC Bulletin

Subject:      Interagency Advisory on the Unsafe and Unsound
              Use of Limitation of Liability Provisions and
              Certain Alternative Dispute Resolution Provisions
              in External Audit Engagement Letters

Description:  Request for Comment

Date:         May 10, 2005

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

The Federal Financial Institutions Examination Council (FFIEC),
on behalf of the Office of Thrift Supervision; the Board of
Governors of the Federal Reserve System; the Federal Deposit
Insurance Corporation; the National Credit Union Administration;
and the Office of the Comptroller of the Currency (OCC)
(collectively, the agencies), is seeking public comment on the
attached "Interagency Advisory on the Unsafe and Unsound Use of
Limitation of Liability Provisions and Certain Alternative
Dispute Resolution Provisions in External Audit Engagement
Letters."  The purpose of the advisory is to alert financial
institutions to the safety and soundness implications of
provisions that limit the external auditor's liability in a
financial statement audit.  The guidance would apply to all
financial institutions, regardless of size, whether or not the
financial institution is a public company, or whether the
external audit is required or voluntary.

All interested parties are invited to submit written comments to
the FFIEC.  All comments, which will be shared among the
agencies, will be accepted on or before June 9.

For further information, please contact your OCC district
accountant or the OCC's Chief Accountant's office at (202) 874-
5180.




Zane D. Blackburn
Chief Accountant


Attachment: 70 FR 24576
        [http://www.occ.treas.gov/fr/fedregister/70fr24576.pdf]