12 CFR 621.32
§ 621.32 Conflicts of interest and rotation.
United States · 12 CFR — Banks and Banking · Status: effective
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- Citation
- 12 CFR 621.32, § 621.32 Conflicts of interest and rotation, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/48065
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Full text
(a) Conflicts of interest.
(1) A Farm Credit institution may not engage a qualified public accountant to conduct the institution's audit if the accountant uses a partner, concurring partner, or lead member in the audit engagement team who was a director, officer or employee of the Farm Credit institution within the past year.
(2) A Farm Credit institution may not make an employment offer to a partner, concurring partner, or lead member serving on the institution's audit engagement team during the audit or within 1 year of the conclusion of the audit engagement.
(b) Rotation. Each institution may engage the same lead and reviewing audit partners of a qualified public accountant to conduct the institution's audit for no more than 5 consecutive years. The institution must then require the lead and reviewing audit partners assigned to the institution's audit team to rotate out of the audit team for 5 years. At the end of 5 years, the institution may again engage the audit services of those lead and reviewing audit partners.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.