---
kind: "section"
citation: "12 C.F.R. § 621.32"
title: "12"
number: "621.32"
heading: "Conflicts of interest and rotation."
url: "https://uscodex.org/cfr/12/621.32"
---

# §621.32. Conflicts of interest and rotation.

- (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.

## Notes

### Source

Source: 71 FR 76120, Dec. 20, 2006, unless otherwise noted.

### Authority

Authority: Secs. 5.17, 5.19, 5.22A, 8.11 of the Farm Credit Act (12 U.S.C. 2183, 2202, 2202a, 2202d, 2252, 2257a, 2279aa-11); Pub. L. 102-552, 106 Stat. 4102, 4134. Link to an amendment published at 91 FR 46706, July 24, 2026.

### Source

Source: 58 FR 48786, Sept. 20, 1993, unless otherwise noted.