We also believe that the Independence Issues Committee, or IIC, should be reactivated. The Committee, which consists of independence experts from eight firms, was supposed to act as an emerging issues task force, providing timely guidance on new issues within the existing independence rules. While Committee members have been active in serving on Board task forces and working groups, and in providing other assistance to the Board, the Committee itself has been inactive due to SEC questions about its role and authority. We believe the IIC can be an invaluable resource to the Board and to auditors and registrants seeking timely guidance on independence issues, and hope that its future role will be clarified in the near future. In addition to assisting the Board in all of its projects, the ISB staff answers independence inquiries from practitioners, clients, and others.
Inquiries can be formal or informal.
Formal inquiries must be submitted in writing, and are public unless there is some compelling reason for the Staff to grant confidentiality to the inquiry. Guidance received on a formal inquiry can be relied on with the SEC Staff. Once ratified by the Board, anyone can rely on such guidance as authoritative. Guidance received on an informal inquiry is not authoritative. The Staff spends a fair amount of time, however, issuing informal guidance to practitioners and others over the phone, having answered about 200 inquiries last year.