C. Independent Accountant Engagement Letters- We understand that the limiations of liability are applicable to Independent Public Accountants but what about Internal Auditors? Do we have a basis to request that our Internal Auditors remove these limitations from their engagement letters?

Bump

This is referencing the annual engagement of your financial statement audit by a CPA firms (see part 363.3).

Typically internal auditors do not perform attestation services and operate solely under the direction of the bank (audit committee) even is the service is outsourced. I'm not sure the extent of liability they would assume under those circumstances anyway.

I'm attempting to get a consensus.

What is everybody else doing, if anything, to address this issue?

Are you requesting the internal auditors to remove these limitations from their engagement letters?

Internal auditors are not considered 'independent accountants' even if the service is outsourced. Independent accountants is synonymous with external auditors.

Even if your internal audit function is outsourced - those people ARE NOT considered external auditors.

OK, Thanks.

On a different note, on July 20 a correction was posted to the final rule. The rule was republished in its entirety in order to correct an error in the DATES section which caused the applicability date to be incorrect and to correct language relating to holding company depository institution subsidiaries.

Can you direct me as to what sections were changed in reference to the language relating to holding co depository institution subsidiaries?

Here is the original release. I will leave the comparison to you:

http://edocket.access.gpo.gov/2009/pdf/E9-15378.pdf