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Sarbanes-Oxley News & Developments
Accounting Board Sets Auditing RulesAccounting industry self policing ends as board created by Sarbanes-Oxley Act votes to assume power.
> > Washington-The new board set up to regulate accountants voted wednesday, April 16,2003, to take over responsibility for setting auditing rules, marking the end of an era in which the accounting industry set its own standards.
Under the Sarbanes-Oxley Act a sweeping corporate reform bill passed last year the Public Company Accounting Oversight Board had the option to leave the auditing standard-setting process to another group, but decided against that.
So far, the accounting profession has been governed by auditing rules developed and issued by the Auditing Standards Board, an arm of the industrys main trade and lobby group, the American Institute of Certified Public Accounts.
The recently formed accounting board, which named departing NY Federal Reserve Pres.William McDonough as its new head Tuesday, April 15,2003, also agreed to set auditing rules with help from an advisory group to be set up comprised of accounting, investing and other experts.
Apart from setting auditing rules, the boards other crucial task will be to regularly inspect major accounting firms. It also can revoke an auditing firms registration and set fines up to $15 million.
Source: CNN and Money Magazine
Published:2003-04-17
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