Auditor independence body disbanded
An organisation created to analyse and develop standards in auditor independence in the US, is to be disbanded later this month.
The four-year-old Independent Standards Board was formed under an agreement between the US Securities and Exchange Commission and the American Institute of CPAs.
But following the revision of auditor independence rules last year, both bodies agreed the ISB had met its goals and will shut 31 July.
During its tenure, the ISB made contributions in areas such as communications between audit committees and auditors and of professionals leaving an accounting firm to work for one of the firm’s audit clients.
Acting SEC chairman Laura Unger said: ‘The Commission’s auditor independence rulemaking would not have been possible without the foundation laid by the ISB.
‘Major parts of our rules can be traced to the ISB’s standards and public discussions of the issues. The ISB members and staff deserve our greatest thanks for doing a difficult job with skill, statesmanship, and professionalism. They have exhibited the highest level of public service.’
Links
SEC chief pledges widespread review
Arthur Levitt to resign from SEC
Levitt under fire from US Senate
Where Levitt’s plan falls short