{"abstract":"The Securities and Exchange Commission (\"SEC\" or \"Commission\") today amended Financial Reporting Release No. 50 (\"FRR 50\") to state that it will no longer look to the Independence Standards Board (\"ISB\" or \"Board\") for leadership in establishing and improving auditor independence standards applicable to auditors of the financial statements of Commission registrants. The deliberations and conclusions of the ISB contributed significantly to the development of the Commission's new auditor independence regulations and disclosure requirements, which were adopted in November 2000. In light of the Commission's new auditor independence rules, the Commission believes that many of the issues that led to the creation of the ISB have been resolved, and that going forward the best method to assure the independence of auditors is for the Commission and its staff to enforce and interpret its new rules. In addition, the Commission notes the recent increase in public participation on the American Institute of Certified Public Accountants' (\"AICPA\") Professional Ethics Executive Committee (\"PEEC\") and encourages greater public membership on PEEC. The Commission staff, when appropriate, may work with the PEEC on discrete auditor independence issues. Standards previously adopted by the ISB and interpretations previously issued by the ISB will continue to be authoritative to the extent they do not conflict with the Commission's rules and interpretations. In making this amendment to FRR 50, the Commission reaffirms that maintaining the independence of auditors is crucial to the credibility of financial reporting and, in turn, the capital formation process.","action":"Policy statement.","agencies":[{"raw_name":"SECURITIES AND EXCHANGE COMMISSION","name":"Securities and Exchange Commission","id":466,"url":"https://www.federalregister.gov/agencies/securities-and-exchange-commission","json_url":"https://www.federalregister.gov/api/v1/agencies/466","parent_id":null,"slug":"securities-and-exchange-commission"}],"body_html_url":"https://www.federalregister.gov/documents/full_text/html/2001/07/23/01-18261.html","cfr_references":[{"chapter":null,"citation_url":null,"part":210,"title":17},{"chapter":null,"citation_url":null,"part":211,"title":17}],"citation":"66 FR 38149","comment_url":null,"comments_close_on":null,"correction_of":null,"corrections":[],"dates":"August 22, 2001.","disposition_notes":null,"docket_ids":["Release Nos. 33-7993","34-44557","IC-25066","FR-50A"],"dockets":[],"document_number":"01-18261","effective_on":null,"end_page":38152,"executive_order_notes":null,"executive_order_number":null,"explanation":null,"full_text_xml_url":"https://www.federalregister.gov/documents/full_text/xml/2001/07/23/01-18261.xml","html_url":"https://www.federalregister.gov/documents/2001/07/23/01-18261/commission-policy-statement-on-the-establishment-and-improvement-of-standards-related-to-auditor","images":{},"images_metadata":{},"json_url":"https://www.federalregister.gov/api/v1/documents/01-18261?publication_date=2001-07-23","mods_url":"https://www.govinfo.gov/metadata/granule/FR-2001-07-23/01-18261/mods.xml","not_received_for_publication":null,"page_length":4,"page_views":{"count":79,"last_updated":"2026-04-04 16:15:04 -0400"},"pdf_url":"https://www.govinfo.gov/content/pkg/FR-2001-07-23/pdf/01-18261.pdf","presidential_document_number":null,"proclamation_number":null,"public_inspection_pdf_url":null,"publication_date":"2001-07-23","raw_text_url":"https://www.federalregister.gov/documents/full_text/text/2001/07/23/01-18261.txt","regulation_id_number_info":{},"regulation_id_numbers":[],"regulations_dot_gov_info":{},"regulations_dot_gov_url":null,"significant":null,"signing_date":null,"start_page":38149,"subtype":null,"title":"Commission Policy Statement on the Establishment and Improvement of Standards Related to Auditor Independence","toc_doc":"Auditor independence standards; establishment and improvement; policy statement","toc_subject":"Securities, etc.:","topics":[],"type":"Rule","volume":66}