The new rules, which take effect on October 1, 2003, establish procedures under which the agencies can remove, suspend, or bar an accountant or firm from performing audit and attestation services for insured depository institutions with assets of $500 million or more.

If an accountant or accounting firm has been removed, suspended, or debarred by one of the agencies, or disciplined by the Securities and Exchange Commission or Public Company Accounting Oversight Board, the rules ban the accountant or firm from performing bank audits.

The rules also permit immediate suspensions of accountants or accounting firms in "limited circumstances," the rules state.

The rules provide that certain violations of law, negligent conduct, reckless violations of professional standards or lack of qualifications to perform auditing services may be considered good cause to remove, suspend or bar an accountant or firm from providing audit services for banking organizations subject to section 36.  

The final rules were issued by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the Office of Thrift Supervision.

The 42-page PDF document, "Removal, Suspension, and Debarment of Accountants From Performing Audit Services" can be viewed at http://www.federalreserve.gov/boarddocs/press/bcreg/2003/20030808/attachment.pdf