Must System institutions disclose in their annual reports the fees paid to the external auditor for both audit and nonaudit services?
Yes. Beginning with the 2007 annual report, each FCS bank and association must disclose these fees. A new requirement at § 620.5(l)(2) requires each institution to disclose in its annual report the total fees paid to the qualified public accountant, breaking the fees into three categories: audit services, nonaudit services, and tax services. The types of nonaudit services must be identified and each institution must indicate that the nonaudit services were approved by its audit committee. The fees reported are for the 12-month period covered by the annual report. This new requirement applies only to fees paid to the qualified public accountant engaged to conduct the reporting Farm Credit institution’s financial statement audit. The requirement is intended to help shareholders assess the independence of the institution’s external auditor. This requirement does not apply to fees paid to other qualified public accountants not engaged to conduct the institution’s audit.
Related Questions
- Must a System institution’s audit committee pre-approve all nonaudit services or just those performed by the external auditor engaged to conduct the financial statement audit?
- Must System institutions disclose in their annual reports the fees paid to the external auditor for both audit and nonaudit services?
- What audit fees were paid to the auditor for the prior year services?
