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 January 14, 2003 #03-02
E-mail: [email protected]

ACB SEEKS CLARIFICATIONS OF AUDITOR INDEPENDENCE PROPOSAL

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WASHINGTON, D.C. — America’s Community Bankers, while supporting the efforts of the Securities and Exchange Commission to draft a rule to strengthen the independence of auditors of public companies, has asked for clarification of several issues that would place additional burdens on community banks.

In its comment letter, ACB sought clarification that the scope of prohibited services does not include performing the “FDICIA audit” and the internal control report required by the Sarbanes-Oxley Act; that consultation will be permitted on compensation matters; that expert opinions can be rendered in connection with legal, administrative or regulatory proceedings; and that the formulation of tax strategies, the issuance of tax opinions and representation before the government will be permitted.

ACB urged the SEC to apply the partner rotation requirement only to the lead and reviewing partners, or as an alternative to allow partners to serve on the auditing team for up to seven years. ACB suggested reducing the “time-out” period from the proposed five years to two years to minimize disruption and hold down auditing costs.

The comment letter is attached.

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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