But this is the first time that we’ve appeared before you, and so I briefly would like to go over theindependence related matters that have occupied our time.
The board was established in 1997 fast installment loans airline drive Staunton VA and was authorized in very early 1998 by the issuance of an FRR from the SEC to create standards, principle-based standards, to determine the independence of auditors of public companies.
It’s four members of the profession and four lay people or non-accountants of some experience
We appointed a task force of the board, a task force of public citizens both from the academy and from the profession and from the investment community, and we have academic consultants.
That task force and the consultants have been producing working on a conceptual framework, which is a rather advanced state but still a work-in-progress.
And we, in addition to the conceptual framework, began before the conceptual framework was completed in an imperfect process but one we felt some anxiousness to begin to advance the ball on substantive standard creation, the first standard that we took up for studying involved corporate governance.
And our thought was to try and encourage in some way the involvement of audit committees in the maintenance and monitoring of the auditor company relationship, and we went through a long public process with public hearings and notice, et cetera, and adopted Independence Standards Board Standard No. 1 which requires conversations between theauditor and the audit committee of the board with respect to all relationships that a reasonable person might believe would bear upon the independence of auditors. Continue reading “We set about early on to create a conceptual framework for doing that job”