SEC/AICPA announce

SEC and AICPA Announce Members of Independence Board

T he Securities and Exchange Commission and the American Institute of CPAs named the eight members of the Independence Standards Board (ISB), the new private-sector body charged to create, codify, amend and preserve independence standards for auditors of public companies.

The ISBs composition is divided equally between public members and CPAs. The ISB chairman, William T. Allen, director of the New York University Center for Law and Business and the former chancellor of the Delaware Court of Chancery, is one of the four public representatives. The other three are

• John C. Bogel, chairman of the board of the Vanguard Group, Inc.
• Robert E. Denham, chairman and chief executive officer, Salomon, Inc.
• Manuel H. Johnson, cochairman and senior partner, Johnson Smick International and former vice-chairman of the Board of Governors of the Federal Reserve System.

Members representing the CPA profession include

• Stephen G. Butler, chairman and CEO, KPMG Peat Marwick.
• Philip A. Laskawy, chairman and CEO, Ernst & Young.
• Barry C. Melancon, president and CEO, AICPA.
• James J. Schiro, chairman and senior partner, Price Waterhouse.

Chairman Allen said he was eager to begin work with the board. “The formation of the ISB presents an opportunity to re-examine a vital issue of securities regulation,” said Allen. The ISB is a part of the SEC practice section of the AICPA division for CPA firms and will be headquartered in the AICPA New Jersey office.