The Independence Standards Board (ISB) has served its purpose and is ready to disband. The ISB was formed through an agreement between the Securities & Exchange Commission and the American Institute of CPAs, and its chief responsibility was to help shape the auditor independence rules that were adopted last year.
As part of its mission, the ISB worked to improve communications between auditors and audit committees, and documented the effects of auditors who performed non-traditional audit services for their audit clients.
Going forward, the AICPA has indicated that there are viable alternatives to the ISB. "Given the success we've had with the Public Oversight Board's Panel on Audit Effectiveness and the Blue Ribbon Panel on the Effectiveness of Corporate Audit Committees, we believe the best way to address future issues is for the SEC, the public, and the profession to work together, supplemented by ad hoc groups as appropriate,' said AICPA President and CEO Barry Melancon.