The first is that attorneys and accountants are both advocates for their clients. While accountants may have taken on very limited advocacy roles in certain tax areas, their role in an audit is certainly not as an advocate. The second is that a materiality threshold can be set without at least the appearance that the auditor's independence has been compromised. Finally, I question whether firewalls can really maintain the degree of independence required of auditors. Appearances alone may be enough to undermine investors' confidence.
Auditors have a special franchise under our securities laws.
They are the only experts that public companies must hire. The SEC will continue to enforce independence rules to maintain the public's confidence in our system of financial reporting. My remarks today have focused on maintaining the integrity of the audit. As an SEC Commissioner, that is a logical focus for me. I would also like to express my personal view on the legal practice.