Profession adopts independence standard

CAs have voted to adopt new auditor independence requirements that will hold auditors to higher professional and ethical standards, thereby further protecting the public interest.

The new standard, the result of a rigorous review, consultation and approval process lasting more than a year, reflects the features of the standard issued by the International Federation of Accountants in 2001, combined with the rigor of United States' Sarbanes-Oxley legislation and SEC requirements for public companies. The core principle of the new standard is that every effort must be made to eliminate all real or perceived threats to the auditor's independence.

For more on the new standard, go to index.cfm/ci_id/18853/la_id/1.htm. Also see "CAs vote on independence standard" and "A principles-based approach."