ICI Comments on Auditor Independence ProposalWashington, DC, January 15, 2003 - The Institute supports a recent SEC proposal that would implement the auditor independence provisions contained in the Sarbanes-Oxley Act. The proposed rules would, among other things: - prohibit members of an audit engagement team from accepting certain employment positions with audit clients;
- amend the SEC's existing regulations related to prohibited non-audit services;
- require certain partners to rotate off of an audit engagement team after five years;
- require approval of audit and non-audit services provided by an auditor;
- prohibit an audit partner from receiving compensation for nonaudit services; and
- require disclosure of fees paid to accountants.
In a recent comment letter, the Institute suggests that the proposed rules be revised regarding how they will be applied to funds, noting that several of the proposals do not adequately take into account the unique characteristics of investment companies.
|
