Interagency Advisory Warns Financial Institutions Against Unsafe Auditor Liability Provisions

Summary

The Federal Deposit Insurance Corporation (FDIC), Office of Thrift Supervision (OTS), Federal Reserve Board (Board), National Credit Union Administration (NCUA), and Office of the Comptroller of the Currency (OCC) have issued an advisory cautioning financial institutions' boards of directors, audit committees, and management against entering into agreements with external auditors that include unsafe and unsound limitation of liability provisions, particularly for audits of financial statements, internal controls, and management's internal control assessments.