The Savings and Community Bankers of America has advised the Federal Deposit Insurance Corporation to seek repeal of a provision that requires independent audits of Insured depository Institutions. SCBA Included this recommendation In its critique of regulations proposed by the regulator to implement section 112 of the FDIC Improvement Act of 1991.
SCBA and other trade groups and affected Institutions offered several recommendations for changes In the regulations. Chief among them is to increase the asset size of banks and thrifts that are to be exempt from independent audits.
The SCBA and the Independent Bankers Association of America suggest $500 million. compared with $150 million In the proposed regulations.
The American Bankers Association. which has not yet filed its formal comments. had previously recommended $1 billion as the cutoff size. [See The Mortgage Marketplace. May 25. page 3.)
"By far the most onerous and potentially costly requirement is that independent public accountants attest to an institution's compliance with designated laws and regulations." wrote the SCBA. "... Attestations regarding the internal control structure over the institution's compliance with laws and regulations would minimize the overlap with existing examination practices and would reduce the time and costs involved [in] such attestations. Ideally, such an internal control structure would enable Independent auditors to determine any 'material' deficiencies In compliance with the control structure. as is currently possible for assessing the internal control structure over financial reporting."