Audit Policy Update

Product Update Notification

Audit Policy Update - 12/27/05

Bankpolicies.com is proud to announce the immediate availability of our revised Audit Policy and Procedures Template product.

The revision to this product is in response to the FDIC's Financial Institution Letter 119-2005 "Annual Independent Audits and Reporting Requirements - Amendments to Part 363" released on 11/28/05. This guidance has amended Part 363 of FDIC regulations by raising the asset-size threshold from $500 million to $1 billion for internal control assessments by management and external auditors. For institutions between $500 million and $1 billion in assets, only a majority, rather than all, of the members of the audit committee, who must be outside directors, must be independent of management. The final rule is effective December 28, 2005.

http://www.fdic.gov/news/news/financial/2005/fil11905.html

What's Revised

Topic 3 - Sarbanes-Oxley Act Requirements. This section was completely revised to include the following subtopics:

General

Compliance of Subsidiaries of Holding Companies

Annual Reporting Requirements

Independent Public Accountant

Filing and Notice Requirements

Audit Committees

Code of Ethics for Senior Financial Officers

Topic 4 - Reporting Requirements. The Filing and Notice Requirements subtopic was expanded and a new subtopic entitled "Disclosures in Periodic Reports" was added (formerly included in the Topic 3 section).

Topic 5 - Role of Independent Public Accountant. This section was completely revised to include the following subtopics:

General Qualifications

Independence

Audit Partner Rotation

Audit Reports to Audit Committees

Peer Reviews and Filing Reports

Information to Independent Public Accountant

Attestation Reports

Reviews with Audit Committee and Management

Notice of Termination

Topic 7 - Audit Committee Responsibilities. The General and Access to Counsel subtopics were revised and expanded. The following new subtopics were added:

Holding Company Audit Committee

Banking or Related Financial Management Expertise

Large Customers

Ordering Information

This revised product is available to purchase from Bankpolicies.com for:

$325.00 - List Price

- or -

$50.00* - Update Price

*Applies only to clients who have purchased our Audit Policy and Procedures Template.

If you have ordered this product within the past 30 days since 12/27/05 you are eligible to receive the Product Update at no charge.

Click here to place an order for this product. Clients who are eligible for our Legacy Rewards Volume Discount can apply their applicable discount level to the upgrade or list price (whichever applies).

NOTE: Refer to our Place an Order page for important information regarding payment terms and our return policy. Orders placed for Product Updates are only available directly through Bankpolicies.com.

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