{"abstract":"The Securities and Exchange Commission (\"SEC\" or \"Commission\") is proposing amendments to its existing requirements regarding auditor independence to enhance the independence of accountants that audit and review financial statements and prepare attestation reports filed with the Commission. The proposed rules recognize the critical role played by audit committees in the financial reporting process and the unique position of audit committees in assuring auditor independence. As directed by section 208(a) of the Sarbanes-Oxley Act of 2002, we are proposing rules to: Revise the Commission's regulations related to the non-audit services that, if provided to an audit client, would impair an accounting firm's independence; define the circumstances whereby an issuer's audit committee can and should pre-approve all audit and allowable non-audit services provided to the issuer by the auditor of an issuer's financial statements; prohibit partners on the audit engagement team from providing audit services to the issuer for more than five consecutive years; prohibit an accounting firm from auditing an issuer's financial statements if certain members of management of that issuer had been members of the accounting firm's audit engagement team within the one- year period preceding the commencement of audit procedures; and require that the auditor of an issuer's financial statements report certain matters to the issuer's audit committee, including \"critical\" accounting policies used by the issuer. In addition to the provisions required by the Act, we also are proposing rules defining an accountant as not being independent from an audit client if any partner, principal or shareholder of the accounting firm who is a member of the engagement team received compensation based on any service provided or sold to that client other than audit, review and attest services. Further, we proposed to amend and require additional disclosures to investors of information related to the audit and non-audit services provided by, and fees paid by the issuer to, the auditor of the issuer's financial statements.","action":"Proposed rule.","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/2002/12/13/02-30884.html","cfr_references":[{"chapter":null,"citation_url":null,"part":210,"title":17},{"chapter":null,"citation_url":null,"part":240,"title":17},{"chapter":null,"citation_url":null,"part":249,"title":17},{"chapter":null,"citation_url":null,"part":274,"title":17}],"citation":"67 FR 76780","comment_url":null,"comments_close_on":"2003-01-13","correction_of":null,"corrections":[],"dates":"Comments should be received on or before January 13, 2003.","disposition_notes":null,"docket_ids":["Release No. 33-8154","34-46934","35-27610","IC-25838","IA-2088, FR-64, File No. S7-49-02"],"dockets":[],"document_number":"02-30884","effective_on":null,"end_page":76817,"executive_order_notes":null,"executive_order_number":null,"full_text_xml_url":"https://www.federalregister.gov/documents/full_text/xml/2002/12/13/02-30884.xml","html_url":"https://www.federalregister.gov/documents/2002/12/13/02-30884/strengthening-the-commissions-requirements-regarding-auditor-independence","images":{},"images_metadata":{},"json_url":"https://www.federalregister.gov/api/v1/documents/02-30884?publication_date=2002-12-13","mods_url":"https://www.govinfo.gov/metadata/granule/FR-2002-12-13/02-30884/mods.xml","not_received_for_publication":null,"page_length":38,"page_views":{"count":436,"last_updated":"2026-07-25 18:15:03 -0400"},"pdf_url":"https://www.govinfo.gov/content/pkg/FR-2002-12-13/pdf/02-30884.pdf","presidential_document_number":null,"proclamation_number":null,"public_inspection_pdf_url":null,"publication_date":"2002-12-13","raw_text_url":"https://www.federalregister.gov/documents/full_text/text/2002/12/13/02-30884.txt","regulation_id_number_info":{"3235-AI73":{"issue":"200304","html_url":"https://www.federalregister.gov/regulations/3235-AI73/rule-to-strengthen-the-commission-s-requirements-regarding-auditor-independence","title":"Rule to Strengthen the Commission?s Requirements Regarding Auditor Independence","xml_url":"http://www.reginfo.gov/public/do/eAgendaViewRule?pubId=200304&RIN=3235-AI73&operation=OPERATION_EXPORT_XML","priority_category":"Substantive, Nonsignificant"}},"regulation_id_numbers":["3235-AI73"],"regulations_dot_gov_info":{},"regulations_dot_gov_url":null,"significant":false,"signing_date":null,"start_page":76780,"subtype":null,"title":"Strengthening the Commission's Requirements Regarding Auditor Independence","toc_doc":"Auditor independence, requirements","toc_subject":"Securities, etc.:","topics":["Accountants","Accounting","Investment companies","Reporting and recordkeeping requirements","Securities"],"type":"Proposed Rule","volume":67}