We are approaching $500 million and I have a question about External Auditor Independence. I know there are requirements about Audit Committee member independence but are there any requirements about External Auditor Independence.

The crux of my question is can an External Auditor Firm perform tax or advisory services to the major shareholder or other insiders?

Thanks!

For a financial statement audit to be performed, which you are stating about, the audit firm must declare their independence. There is a possibility, the Bank may not know of other services the firm is performing for a shareholder or other insiders. It is the CPA firm's responsibility.

Thanks osucpa - if the audit firm is conducting other services does that negate its independence?

It would depend on what those services are. The examples you noted about, I could not answer. If you are uncomfortable with the situation, I would recommend you have a conversation with the engagement partner.

When the firm prepared their proposal, they should have acknowledged their independence.