52319Federal Register / Vol. 64, No. 187 / Tuesday, September 28, 1999 / Notices
Norfolk, City of Virginia Beach, and the
counties of James City, Isle of Wight, and
Southampton for Individual Assistance and
Public Assistance.
All counties within the
Commonwealth of Virginia are eligible
to apply for assistance under the Hazard
Mitigation Grant Program.
(The following Catalog of Federal Domestic
Assistance Numbers (CFDA) are to be used
for reporting and drawing funds: 83.537,
Community Disaster Loans; 83.538, Cora
Brown Fund Program; 83.539, Crisis
Counseling; 83.540, Disaster Legal Services
Program; 83.541, Disaster Unemployment
Assistance (DUA); 83.542, Fire Suppression
Assistance; 83.543, Individual and Family
Grant (IFG) Program; 83.544, Public
Assistance Grants; 83.545, Disaster Housing
Program; 83.548, Hazard Mitigation Grant
Program)
James L. Witt,
Director.
[FR Doc. 99–25175 Filed 9–27–99; 8:45 am]
BILLING CODE 6718–02–P
FEDERAL EMERGENCY
MANAGEMENT AGENCY
[FEMA–1293–DR]
Commonwealth of Virginia;
Amendment No. 1 to Notice of a Major
Disaster Declaration
AGENCY: Federal Emergency
Management Agency (FEMA).
ACTION: Notice.
SUMMARY: This notice amends the notice
of a major disaster for the
Commonwealth of Virginia, (FEMA–
1293–DR), dated September 18, 1999,
and related determinations.
EFFECTIVE DATE: September 20, 1999.
FOR FURTHER INFORMATION CONTACT:
Madge Dale, Response and Recovery
Directorate, Federal Emergency
Management Agency, Washington, DC
20472, (202) 646–3772.
SUPPLEMENTARY INFORMATION: The notice
of a major disaster for the
Commonwealth of Virginia is hereby
amended to include the following areas
among those areas determined to have
been adversely affected by the
catastrophe declared a major disaster by
the President in his declaration of
September 18, 1999:
The independent cities of Colonial Heights
City and Petersburg City, and the counties of
Accomack, Lancaster, Northumberland,
Prince George County, Surry, Sussex, and
York for Individual Assistance.
The independent cities of Suffolk City and
Williamsburg, and the counties of Accomack,
New Kent, Northampton, Prince George,
Surry, Sussex, Westmoreland, and York for
Public Assistance.
(The following Catalog of Federal Domestic
Assistance Numbers (CFDA) are to be used
for reporting and drawing funds: 83.537,
Community Disaster Loans; 83.538, Cora
Brown Fund Program; 83.539, Crisis
Counseling; 83.540, Disaster Legal Services
Program; 83.541, Disaster Unemployment
Assistance (DUA); 83.542, Fire Suppression
Assistance; 83.543, Individual and Family
Grant (IFG) Program; 83.544, Public
Assistance Grants; 83.545, Disaster Housing
Program; 83.548, Hazard Mitigation Grant
Program)
Lacy E. Suiter,
Executive Associate Director, Response and
Recovery Directorate.
[FR Doc. 99–25176 Filed 9–27–99; 8:45 am]
BILLING CODE 6718–02–P
FEDERAL FINANCIAL INSTITUTIONS
EXAMINATION COUNCIL
Federal Financial Institutions
Examination Council
Interagency Policy Statement on
External Auditing Programs of Banks
and Savings Associations
ACTION: Notice of final interagency
policy statement.
SUMMARY: The Federal Financial
Institutions Examination Council
(FFIEC) on behalf of the Board of
Governors of the Federal Reserve
System (FRB), the Federal Deposit
Insurance Corporation (FDIC), the Office
of the Comptroller of the Currency
(OCC), and the Office of Thrift
Supervision (OTS), collectively referred
to as the ‘‘banking agencies’’ or the
‘‘agencies,’’ is adopting an Interagency
Policy Statement on External Auditing
Programs of Banks and Savings
Associations (Policy Statement). The
National Credit Union Administration
(NCUA), also a member of the FFIEC,
does not plan to adopt the policy at this
time. Banks and savings associations
(institutions) with $500 million or more
in total assets must have an annual
audit performed by an independent
public accountant under section 36 of
the Federal Deposit Insurance Act (FDI
Act), as implemented by 12 CFR Part
363. Thus, this Policy Statement applies
only to institutions below that threshold
that are not otherwise subject to audit
requirements.
Accurate financial reporting is
essential to an institution’s safety and
soundness. To ensure accurate and
reliable financial reporting, the agencies
recommend that the board of directors
of each institution establish and
maintain an external auditing program.
This Policy Statement provides
guidance regarding independent
external auditing programs
encompassing: responsibilities of boards
of directors, audit committees, and
senior management; attributes and types
of external auditing programs; special
situations for institutions that are part of
a holding company, newly chartered
institutions, and institutions presenting
supervisory concern; and examiner
guidance for the review of external
auditing programs. The Policy
Statement also encourages institutions
that are not otherwise required to do so,
to establish an audit committee. This
committee should consist entirely of
outside directors, if practicable.
EFFECTIVE DATE: The Policy Statement is
effective for fiscal years beginning on or
after January 1, 2000.
FOR FURTHER INFORMATION CONTACT:
FDIC: Doris L. Marsh, Examination
Specialist, Division of Supervision,
(202) 898–8905, or A. Ann Johnson,
Counsel, Legal Division, (202) 898–
3573, FDIC, 550 17th Street, N.W.,
Washington, DC 20429.
FRB: Charles H. Holm, Manager, (202)
452–3502, or Arthur Lindo, Supervisory
Financial Analyst, (202) 452–2695,
Accounting Policy and Disclosure,
Division of Banking Supervision and
Regulation, Board of Governors of the
Federal Reserve System, 20th Street and
Constitution Avenue, N.W.,
Washington, DC 20551.
OCC: Gene Green, Deputy Chief
Accountant, Office of the Chief
Accountant, (202) 874–4933, or Bill
Morris, Senior Policy Analyst/National
Bank Examiner, (202) 874–4915, Core
Policy Division, Office of the
Comptroller of the Currency, 250 E
Street, S.W., Washington, DC 20219.
OTS: Timothy J. Stier, Chief
Accountant, (202) 906–5699, or
Christine A. Smith, Policy Analyst,
(202) 906–5740, Accounting Policy
Division, Office of Thrift Supervision,
1700 G Street, N.W., Washington, DC
20552.
SUPPLEMENTARY INFORMATION:
I. Background
An institution’s internal and external
auditing programs are critical to its
safety and soundness. Many institutions
currently have independent external
audits. These audits are undertaken
voluntarily or are required by section 36
of the FDI Act (12 U.S.C. 1831m) and its
implementing regulation, 12 CFR part
363; the Securities and Exchange Act of
1934 (15 U.S.C. 78a); the Federal
Reserve bank holding company
reporting requirements in the FR Y–6
Annual Report of Bank Holding
Companies; or other appropriate laws
and regulations. When an institution
lacks an internal auditing program or
VerDate 22-SEP-99 21:25 Sep 27, 1999 Jkt 183247 PO 00000 Frm 00054 Fmt 4703 Sfmt 4703 E:\FR\FM\28SEN1.XXX pfrm01 PsN: 28SEN1
Norfolk, City of Virginia Beach, and the
counties of James City, Isle of Wight, and
Southampton for Individual Assistance and
Public Assistance.
All counties within the
Commonwealth of Virginia are eligible
to apply for assistance under the Hazard
Mitigation Grant Program.
(The following Catalog of Federal Domestic
Assistance Numbers (CFDA) are to be used
for reporting and drawing funds: 83.537,
Community Disaster Loans; 83.538, Cora
Brown Fund Program; 83.539, Crisis
Counseling; 83.540, Disaster Legal Services
Program; 83.541, Disaster Unemployment
Assistance (DUA); 83.542, Fire Suppression
Assistance; 83.543, Individual and Family
Grant (IFG) Program; 83.544, Public
Assistance Grants; 83.545, Disaster Housing
Program; 83.548, Hazard Mitigation Grant
Program)
James L. Witt,
Director.
[FR Doc. 99–25175 Filed 9–27–99; 8:45 am]
BILLING CODE 6718–02–P
FEDERAL EMERGENCY
MANAGEMENT AGENCY
[FEMA–1293–DR]
Commonwealth of Virginia;
Amendment No. 1 to Notice of a Major
Disaster Declaration
AGENCY: Federal Emergency
Management Agency (FEMA).
ACTION: Notice.
SUMMARY: This notice amends the notice
of a major disaster for the
Commonwealth of Virginia, (FEMA–
1293–DR), dated September 18, 1999,
and related determinations.
EFFECTIVE DATE: September 20, 1999.
FOR FURTHER INFORMATION CONTACT:
Madge Dale, Response and Recovery
Directorate, Federal Emergency
Management Agency, Washington, DC
20472, (202) 646–3772.
SUPPLEMENTARY INFORMATION: The notice
of a major disaster for the
Commonwealth of Virginia is hereby
amended to include the following areas
among those areas determined to have
been adversely affected by the
catastrophe declared a major disaster by
the President in his declaration of
September 18, 1999:
The independent cities of Colonial Heights
City and Petersburg City, and the counties of
Accomack, Lancaster, Northumberland,
Prince George County, Surry, Sussex, and
York for Individual Assistance.
The independent cities of Suffolk City and
Williamsburg, and the counties of Accomack,
New Kent, Northampton, Prince George,
Surry, Sussex, Westmoreland, and York for
Public Assistance.
(The following Catalog of Federal Domestic
Assistance Numbers (CFDA) are to be used
for reporting and drawing funds: 83.537,
Community Disaster Loans; 83.538, Cora
Brown Fund Program; 83.539, Crisis
Counseling; 83.540, Disaster Legal Services
Program; 83.541, Disaster Unemployment
Assistance (DUA); 83.542, Fire Suppression
Assistance; 83.543, Individual and Family
Grant (IFG) Program; 83.544, Public
Assistance Grants; 83.545, Disaster Housing
Program; 83.548, Hazard Mitigation Grant
Program)
Lacy E. Suiter,
Executive Associate Director, Response and
Recovery Directorate.
[FR Doc. 99–25176 Filed 9–27–99; 8:45 am]
BILLING CODE 6718–02–P
FEDERAL FINANCIAL INSTITUTIONS
EXAMINATION COUNCIL
Federal Financial Institutions
Examination Council
Interagency Policy Statement on
External Auditing Programs of Banks
and Savings Associations
ACTION: Notice of final interagency
policy statement.
SUMMARY: The Federal Financial
Institutions Examination Council
(FFIEC) on behalf of the Board of
Governors of the Federal Reserve
System (FRB), the Federal Deposit
Insurance Corporation (FDIC), the Office
of the Comptroller of the Currency
(OCC), and the Office of Thrift
Supervision (OTS), collectively referred
to as the ‘‘banking agencies’’ or the
‘‘agencies,’’ is adopting an Interagency
Policy Statement on External Auditing
Programs of Banks and Savings
Associations (Policy Statement). The
National Credit Union Administration
(NCUA), also a member of the FFIEC,
does not plan to adopt the policy at this
time. Banks and savings associations
(institutions) with $500 million or more
in total assets must have an annual
audit performed by an independent
public accountant under section 36 of
the Federal Deposit Insurance Act (FDI
Act), as implemented by 12 CFR Part
363. Thus, this Policy Statement applies
only to institutions below that threshold
that are not otherwise subject to audit
requirements.
Accurate financial reporting is
essential to an institution’s safety and
soundness. To ensure accurate and
reliable financial reporting, the agencies
recommend that the board of directors
of each institution establish and
maintain an external auditing program.
This Policy Statement provides
guidance regarding independent
external auditing programs
encompassing: responsibilities of boards
of directors, audit committees, and
senior management; attributes and types
of external auditing programs; special
situations for institutions that are part of
a holding company, newly chartered
institutions, and institutions presenting
supervisory concern; and examiner
guidance for the review of external
auditing programs. The Policy
Statement also encourages institutions
that are not otherwise required to do so,
to establish an audit committee. This
committee should consist entirely of
outside directors, if practicable.
EFFECTIVE DATE: The Policy Statement is
effective for fiscal years beginning on or
after January 1, 2000.
FOR FURTHER INFORMATION CONTACT:
FDIC: Doris L. Marsh, Examination
Specialist, Division of Supervision,
(202) 898–8905, or A. Ann Johnson,
Counsel, Legal Division, (202) 898–
3573, FDIC, 550 17th Street, N.W.,
Washington, DC 20429.
FRB: Charles H. Holm, Manager, (202)
452–3502, or Arthur Lindo, Supervisory
Financial Analyst, (202) 452–2695,
Accounting Policy and Disclosure,
Division of Banking Supervision and
Regulation, Board of Governors of the
Federal Reserve System, 20th Street and
Constitution Avenue, N.W.,
Washington, DC 20551.
OCC: Gene Green, Deputy Chief
Accountant, Office of the Chief
Accountant, (202) 874–4933, or Bill
Morris, Senior Policy Analyst/National
Bank Examiner, (202) 874–4915, Core
Policy Division, Office of the
Comptroller of the Currency, 250 E
Street, S.W., Washington, DC 20219.
OTS: Timothy J. Stier, Chief
Accountant, (202) 906–5699, or
Christine A. Smith, Policy Analyst,
(202) 906–5740, Accounting Policy
Division, Office of Thrift Supervision,
1700 G Street, N.W., Washington, DC
20552.
SUPPLEMENTARY INFORMATION:
I. Background
An institution’s internal and external
auditing programs are critical to its
safety and soundness. Many institutions
currently have independent external
audits. These audits are undertaken
voluntarily or are required by section 36
of the FDI Act (12 U.S.C. 1831m) and its
implementing regulation, 12 CFR part
363; the Securities and Exchange Act of
1934 (15 U.S.C. 78a); the Federal
Reserve bank holding company
reporting requirements in the FR Y–6
Annual Report of Bank Holding
Companies; or other appropriate laws
and regulations. When an institution
lacks an internal auditing program or
VerDate 22-SEP-99 21:25 Sep 27, 1999 Jkt 183247 PO 00000 Frm 00054 Fmt 4703 Sfmt 4703 E:\FR\FM\28SEN1.XXX pfrm01 PsN: 28SEN1
52320 Federal Register / Vol. 64, No. 187 / Tuesday, September 28, 1999 / Notices
1 An examination of the financial statements of an
institution performed by an independent certified
or licensed public accountant in accordance with
generally accepted auditing standards (GAAS) and
of sufficient scope to enable the independent public
accountant to express an opinion on the
institution’s financial statements as to their
presentation in accordance with generally accepted
accounting principles (GAAP).
has weaknesses in an existing program,
examiners often encourage the
institution to have an independent
external audit 1 performed. However,
some institutions, particularly smaller
institutions, still do not have an external
audit for various reasons.
The banking agencies believe that an
independent external audit provides
reasonable assurance that an
institution’s financial statements are
prepared in accordance with generally
accepted accounting principles (GAAP).
Accordingly, the banking agencies
encourage all institutions to obtain
external audits. To provide explicit
guidance to institutions regarding
external audits, the FFIEC has approved
a uniform Interagency Policy Statement.
The FFIEC recommends to the banking
agencies that they individually adopt
the policy.
This Policy Statement is generally
consistent with the individual policies
of the banking agencies. The agencies
have provided guidance on external
audits to their supervised institutions,
but a uniform policy does not exist. For
example, the OCC discusses its policies
with regard to independent external
audits for national banks in the
Comptroller’s Handbook for National
Banks, Section 102, Internal and
External Audits, and the Comptroller’s
Corporate Manual. The FDIC first
adopted guidance on this subject in its
Policy Statement Regarding
Independent External Auditing
Programs of State Nonmember Banks in
1988 (53 FR 47871, November 28, 1988)
and amended this policy in 1996 (61 FR
32438, June 24, 1996). The OTS’s policy
on independent external audits is
discussed in the Thrift Activities
Regulatory Handbook, Section 350,
Independent Audits. The FRB sets forth
its policy on external audits in the FR
Y–6—Annual Report of Bank Holding
Companies and Section 1010, ‘‘External
Audits,’’ of the Commercial Bank
Examination Manual.
II. The Proposed Policy Statement
The FFIEC sought public comment on
the proposed policy statement on
External Auditing Programs of Banks
and Savings Associations in February
1998 (63 FR 7796, February 17, 1998).
A section-by-section summary of the
proposal follows:
Board of Directors’ Responsibilities
The proposed policy statement
expressed the banking agencies’ belief
that accurate financial reporting is
essential to an institution’s safety and
soundness. To help ensure accurate and
reliable financial reporting, the agencies
recommended that the board of
directors of each institution consider
establishing and maintaining an
external auditing program. The banking
agencies believe that the board of
directors should consider an external
auditing program performed by an
independent public accountant to be
conducive to the safe and sound
operation of the institution.
The proposal also encouraged the
board of each institution, that is not
otherwise required to do so, to establish
an audit committee consisting entirely
of outside directors, if practicable. It
stated that an institution’s board of
directors or audit committee should
consider the appropriateness of an
external auditing program for the
institution. In addition, the board of
directors or audit committee should
consider what form of external auditing
program would assure that the
institution’s financial statements and
regulatory reports are prepared reliably.
Alternative External Auditing Programs
The proposed policy statement
identified a preferred external auditing
program—a financial statement audit by
an independent public accountant. The
proposal also identified two
alternatives—a report on the balance
sheet audit and an attestation report on
an internal control assertion.
The proposal also stated that an
institution which is a subsidiary of a
holding company may express the scope
of its external auditing program in terms
of its relationship to the consolidated
group. However, the board or audit
committee of the subsidiary should
determine whether the subsidiary’s
activities involve unusual risks that are
not covered adequately within the scope
of the audit of the consolidated financial
statements. If so, the proposal suggested
that the board or audit committee
consider strengthening its internal
auditing procedures or implementing an
appropriate alternative external auditing
program.
Other Matters Concerning an External
Auditing Program
The proposed policy statement
recommended that an institution’s
external auditing program be performed
as of a quarter-end date that coincides
with a regulatory report date. The
proposal explained that an independent
public accountant should have access to
examination reports, other documents,
and reports of action related to the
supervision of the institution by its
appropriate federal or state banking
agency.
Examiner Review of the External
Auditing Program
The proposal explained that
examiners should consider an
institution’s size, the nature and scope
of its activities, and any compensating
controls when determining the
adequacy of its external auditing
program and making recommendations
for improvement. Examiners should also
consider whether the institution has
undertaken a state-required auditing
program (the scope of which differs
from the preferred and alternative
programs set forth in the proposal)
when determining whether to make
recommendations for improvements to
the institution’s external auditing
program.
Notification and Submission of Reports
In the proposal, the agencies
requested that each institution furnish,
to its appropriate supervisory office, a
copy of any reports by the independent
public accountant pertaining to the
external auditing program. The proposal
also requested each institution to notify
its appropriate supervisory office when
an independent public accountant is
engaged initially or when a change in,
or termination of the services of, its
accountant occurs.
Special Situations
The proposed policy statement noted
that the FDIC Statement of Policy on
Applications for Deposit Insurance (57
FR 12822) requires newly insured
institutions to adopt an appropriate
external auditing program. The proposal
also listed some of the conditions that
might be present in a problem
institution which would warrant
imposing requirements for specific
external auditing services.
Appendix A—Definitions
Appendix A defined the terms used
throughout the proposed policy
statement. The agencies intended that
these definitions be consistent with
those used in current professional
accounting and auditing literature and
in the report of the Committee of
Sponsoring Organizations of the
Treadway Commission (COSO Report),
‘‘Internal Control—Integrated
Framework.’’
VerDate 22-SEP-99 21:25 Sep 27, 1999 Jkt 183247 PO 00000 Frm 00055 Fmt 4703 Sfmt 4703 E:\FR\FM\28SEN1.XXX pfrm01 PsN: 28SEN1
1 An examination of the financial statements of an
institution performed by an independent certified
or licensed public accountant in accordance with
generally accepted auditing standards (GAAS) and
of sufficient scope to enable the independent public
accountant to express an opinion on the
institution’s financial statements as to their
presentation in accordance with generally accepted
accounting principles (GAAP).
has weaknesses in an existing program,
examiners often encourage the
institution to have an independent
external audit 1 performed. However,
some institutions, particularly smaller
institutions, still do not have an external
audit for various reasons.
The banking agencies believe that an
independent external audit provides
reasonable assurance that an
institution’s financial statements are
prepared in accordance with generally
accepted accounting principles (GAAP).
Accordingly, the banking agencies
encourage all institutions to obtain
external audits. To provide explicit
guidance to institutions regarding
external audits, the FFIEC has approved
a uniform Interagency Policy Statement.
The FFIEC recommends to the banking
agencies that they individually adopt
the policy.
This Policy Statement is generally
consistent with the individual policies
of the banking agencies. The agencies
have provided guidance on external
audits to their supervised institutions,
but a uniform policy does not exist. For
example, the OCC discusses its policies
with regard to independent external
audits for national banks in the
Comptroller’s Handbook for National
Banks, Section 102, Internal and
External Audits, and the Comptroller’s
Corporate Manual. The FDIC first
adopted guidance on this subject in its
Policy Statement Regarding
Independent External Auditing
Programs of State Nonmember Banks in
1988 (53 FR 47871, November 28, 1988)
and amended this policy in 1996 (61 FR
32438, June 24, 1996). The OTS’s policy
on independent external audits is
discussed in the Thrift Activities
Regulatory Handbook, Section 350,
Independent Audits. The FRB sets forth
its policy on external audits in the FR
Y–6—Annual Report of Bank Holding
Companies and Section 1010, ‘‘External
Audits,’’ of the Commercial Bank
Examination Manual.
II. The Proposed Policy Statement
The FFIEC sought public comment on
the proposed policy statement on
External Auditing Programs of Banks
and Savings Associations in February
1998 (63 FR 7796, February 17, 1998).
A section-by-section summary of the
proposal follows:
Board of Directors’ Responsibilities
The proposed policy statement
expressed the banking agencies’ belief
that accurate financial reporting is
essential to an institution’s safety and
soundness. To help ensure accurate and
reliable financial reporting, the agencies
recommended that the board of
directors of each institution consider
establishing and maintaining an
external auditing program. The banking
agencies believe that the board of
directors should consider an external
auditing program performed by an
independent public accountant to be
conducive to the safe and sound
operation of the institution.
The proposal also encouraged the
board of each institution, that is not
otherwise required to do so, to establish
an audit committee consisting entirely
of outside directors, if practicable. It
stated that an institution’s board of
directors or audit committee should
consider the appropriateness of an
external auditing program for the
institution. In addition, the board of
directors or audit committee should
consider what form of external auditing
program would assure that the
institution’s financial statements and
regulatory reports are prepared reliably.
Alternative External Auditing Programs
The proposed policy statement
identified a preferred external auditing
program—a financial statement audit by
an independent public accountant. The
proposal also identified two
alternatives—a report on the balance
sheet audit and an attestation report on
an internal control assertion.
The proposal also stated that an
institution which is a subsidiary of a
holding company may express the scope
of its external auditing program in terms
of its relationship to the consolidated
group. However, the board or audit
committee of the subsidiary should
determine whether the subsidiary’s
activities involve unusual risks that are
not covered adequately within the scope
of the audit of the consolidated financial
statements. If so, the proposal suggested
that the board or audit committee
consider strengthening its internal
auditing procedures or implementing an
appropriate alternative external auditing
program.
Other Matters Concerning an External
Auditing Program
The proposed policy statement
recommended that an institution’s
external auditing program be performed
as of a quarter-end date that coincides
with a regulatory report date. The
proposal explained that an independent
public accountant should have access to
examination reports, other documents,
and reports of action related to the
supervision of the institution by its
appropriate federal or state banking
agency.
Examiner Review of the External
Auditing Program
The proposal explained that
examiners should consider an
institution’s size, the nature and scope
of its activities, and any compensating
controls when determining the
adequacy of its external auditing
program and making recommendations
for improvement. Examiners should also
consider whether the institution has
undertaken a state-required auditing
program (the scope of which differs
from the preferred and alternative
programs set forth in the proposal)
when determining whether to make
recommendations for improvements to
the institution’s external auditing
program.
Notification and Submission of Reports
In the proposal, the agencies
requested that each institution furnish,
to its appropriate supervisory office, a
copy of any reports by the independent
public accountant pertaining to the
external auditing program. The proposal
also requested each institution to notify
its appropriate supervisory office when
an independent public accountant is
engaged initially or when a change in,
or termination of the services of, its
accountant occurs.
Special Situations
The proposed policy statement noted
that the FDIC Statement of Policy on
Applications for Deposit Insurance (57
FR 12822) requires newly insured
institutions to adopt an appropriate
external auditing program. The proposal
also listed some of the conditions that
might be present in a problem
institution which would warrant
imposing requirements for specific
external auditing services.
Appendix A—Definitions
Appendix A defined the terms used
throughout the proposed policy
statement. The agencies intended that
these definitions be consistent with
those used in current professional
accounting and auditing literature and
in the report of the Committee of
Sponsoring Organizations of the
Treadway Commission (COSO Report),
‘‘Internal Control—Integrated
Framework.’’
VerDate 22-SEP-99 21:25 Sep 27, 1999 Jkt 183247 PO 00000 Frm 00055 Fmt 4703 Sfmt 4703 E:\FR\FM\28SEN1.XXX pfrm01 PsN: 28SEN1