Federal Financial Institutions Examination Council
|For Immediate Release||May 10, 2005|
Comments Requested on Proposed Advisory
on the Limitation of Liability
The Federal Financial Institutions Examination Council (FFIEC) today requested comments on proposed guidance on the unsafe and unsound use of limitation of liability provisions and certain alternative dispute resolution provisions in external audit engagement letters.
The proposed guidance advises financial institutions’ boards of directors, audit committees, and management that they should ensure that they do not enter into any agreement that contains external auditor limitation of liability provisions with respect to financial statement audits.
Comments on the proposed guidance are requested by June 9, 2005. Specific information on how to file a comment is contained in the attached Federal Register notice.
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The FFIEC was established in March 1979 to prescribe uniform principles, standards, and report forms and to promote uniformity in the supervision of financial institutions. The Council has five member agencies: the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision. The Council's activities are supported by interagency task forces and by an advisory State Liaison Committee, comprised of five representatives of state agencies that supervise financial institutions.