CFA Analysis of SEC Implementation of Audit Reforms

7199468543 Contact: Barbara Roper Director of Investor Protection - - --e, I. ave the board broad authority to raise standards, conduct thorough inspections to ensure those standards are --- in Some Areas Weakens, Modest Auditor In the area of auditor independence, the accounting profession was far more successful in Independence LegislationCommission Fails to Strengthen, and II.the Commission seriously undermined the board's credibility with the investing public. legislation anticipated. What is clear, however, is that in its bungled implementation of the law, g independent regulator the remains unclear whether the board will emerge as the stronits regulators. Given its disastrous start, and its continued lack of a permanent chairman, it left on investors was that the regulated industry had been given veto power over the selection of ion candidate when faced with strong accounting industry opposition, the overwhelming impressBecause of this and SEC Chairman Pitt's withdrawal of support from a highly qualified mented records of support for creating the strongest possible oversight board. well documaking its selections, the Commission passed over innumerable highly qualified candidates with board. Only one board member had any public record of advocating reform. Furthermore, in le expertise whatsoever in the issues to be addressed by the original chairman, with no identifiabminded board, the ...