ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release May 2, 2006 #06-23
E-mail: [email protected]

ACB URGES RELIEF FOR COMMUNITY BANKS FROM SARBANES-OXLEY REQUIREMENTS

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WASHINGTON, D.C. — America’s Community Bankers has renewed its request to the Securities and Exchange Commission to ease the regulatory burden on community banks caused by the internal control and external auditing requirements of the Sarbanes-Oxley Act.

In comments on second-year experiences with implementation of section 404 of the Sarbanes-Oxley Act, ACB renewed its request that the SEC and the Public Company Accounting Oversight Board exempt community banks with assets of less than $1 billion from section 404, and asked for an easing of the burden and costs of compliance for institutions above $1 billion.

“We specifically recommend that the SEC and PCAOB eliminate the auditor’s opinion on the effectiveness of internal controls and add flexibility to the existing standards on requirements governing internal controls, documentation and testing,” ACB said.

ACB’s views will be described in more detail at an SEC/PCAOB roundtable May 10 by Monte N. Redman, executive vice president and CFO, Astoria Federal Savings and Loan Assn., Lake Success, N.Y.

Banks are already required by banking law to have audited financial statements, an annual management report on internal controls and an attestation of management’s assessment of internal controls by an external auditor. Duplication of reporting under section 404 “has resulted in unnecessary and excessive costs for banking institutions,” ACB said.

Click here to read the comment letter.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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