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e-CFR
Data is current as of May 23, 2011

Title 12:
Banks and Banking
PART 562—REGULATORY REPORTING STANDARDS

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§ 562.4   Audit of savings associations and
savings association holding companies.

(a) General. The OTS may require, at any time, an independent
audit of the financial statements of, or the application of procedures
agreed upon by the OTS to a savings association, savings and loan holding
company, or affiliate (as defined by 12 CFR 563.41) by qualified
independent public accountants when needed for any safety and soundness
reason identified by the Director.

(b) Audits required for safety and soundness purposes. The OTS
requires an independent audit for safety and soundness purposes:

(1) If a savings association has received a composite rating of 3, 4 or
5, as defined at §516.5(c) of this chapter; or

(2) If, as of the beginning of its fiscal year, a savings and loan
holding company controls savings association subsidiary(ies) with
aggregate consolidated assets of $500 million or more.

(c) Procedures. (1) When the OTS requires an independent audit
because such an audit is needed for safety and soundness purposes, the
Director shall determine whether the audit was conducted and filed in a
manner satisfactory to the OTS.

(2) The Director may waive the independent audit requirement described
at paragraph (b)(1) of this section, if the Director determines that an
audit would not provide further information on safety and soundness issues
relevant to the examination rating.

(3) When the OTS requires the application of procedures agreed upon by
the OTS for safety and soundness purposes, the Director shall identify the
procedures to be performed. The Director shall also determine whether the
agreed upon procedures were conducted and filed in a manner satisfactory
to the OTS.

(d) Qualifications for independent public accountants. The audit
shall be conducted by an independent public accountant who:

(1) Is registered or licensed to practice as a public accountant, and
is in good standing, under the laws of the state or other political
subdivision of the United States in which the savings association's or
holding company's principal office is located;

(2) Agrees in the engagement letter to provide the OTS with access to
and copies of any work papers, policies, and procedures relating to the
services performed;

(3)(i) Is in compliance with the American Institute of Certified Public
Accountants' (AICPA) Code of Professional Conduct; and

(ii) Meets the independence requirements and interpretations of the
Securities and Exchange Commission and its staff; and

(4) Has received, or is enrolled in, a peer review program that meets
guidelines acceptable to the OTS.

(e) Voluntary audits. When a savings association, savings and
loan holding company, or affiliate (as defined by 12 CFR 563.41) obtains
an independent audit voluntarily, it must be performed by an independent
public accountant who satisfies the requirements of paragraphs (d)(1),
(d)(2), and (d)(3)(i) of this section.

[59 FR 60304, Nov. 23, 1994, as amended at 62 FR 3780, Jan. 27, 1997;
66 FR 13007, Mar. 2, 2001; 67 FR 70531, Nov. 25, 2002; 67 FR 77917,
December 20, 2002]

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