SEC to propose a Public Accountability Board
18 Jun 2002
At its open meeting on Thursday 20 June, the US Securities and Exchange Commission will consider a proposal to create a Public Accountability Board with power to oversee and discipline auditing firms and individual auditors.
In a recent ){PDF 41k), SEC Chairman Harvey L. Pitt said: "We believe this approach will upgrade the performance of auditors, and give investors assurances they can take to the bank that there are plenty of watchdogs making certain numbers they are told are numbers their companies actually achieve." While details have not yet been announced, the Wall Street Journal is reporting that the Board would have 9 members (6 independent plus 3 from the public accounting profession who would not vote on disciplinary matters). The Board might have some standard-setting powers as well. The US Congress will likely consider the SEC proposal in deciding whether to pursue its own current draft legislation that would create a similar oversight body. [Click here for a link to the SEC's 20 June (PDF 41k) on its proposal.]