COMMERCE COMMITTEE DEMOCRATS
Congressman John D. Dingell, Ranking Member

News Release
September 11, 1997 		Contact: Dennis B. Fitzgibbons
202/225-3641

DINGELL RELEASES REPORT ON
ACCOUNTING INDEPENDENCE STANDARDS

WASHINGTON--Rep. John D. Dingell (D-MI), Ranking Minority Member of the House Committee on Commerce, today released a Securities and Exchange Commission (SEC) report on the establishment of the Independence Standards Board (ISB). The mission of the ISB is to establish independence standards applicable to audits of public entities in order to serve the public interest and to protect and promote investor confidence in the securities markets. The SEC's response, which includes the May 7 term sheet outlining the formation and operation of the Board, was prepared in response to Rep. Dingell's request of June 17, 1997.

Dingell issued the following statement:

"The independence of audits is a serious concern, given the sizeable nature of management advisory services provided by accounting firms and the considerable conflicts of interest inherent in certain affiliations. The auditor must be independent in both fact and appearance so that the results of the auditor's examination are perceived to be fair and impartial. The chairman of the SEC and the leadership of the American Institute of Certified Public Accountants (AICPA) responded promptly to my request, and I look forward to working with the ISB, the SEC, and the AICPA to see that public faith in the reliability of financial reporting is maintained."

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