SEC PROPOSES PUBLIC ACCOUNTABILITY BOARD TO SUPPLEMENT OVERSIGHT EFFORT

Hart's Petroleum Finance Week, July, 2002

The Securities and Exchange Commission (SEC) has proposed establishing a public accountability board (PAB) to reform oversight and improve accountability of public companies' independent auditors. The system, which would not be under the accounting profession's control, still would use the private sector. But it would not involve self-regulation. Key provisions of the proposed rules include:

* Membership. To assure that the benefits of the new regulatory regime extend to investors in all public companies, the financial statements of SEC-registered companies would not be deemed to comply with commission requirements unless the company's outside auditors were members of a PAB. An SEC-registered company's financial statements also would not comply with commission...

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