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REP. DeGETTE INTRODUCES PLAN TO PUT TEETH
IN ACCOUNTING STANDARDS
Republican Plan Not Tough
Enough to Restore Investor Confidence
Washington, D.C.—In an effort to help restore investor
confidence, Representative Diana DeGette (D-CO) today
introduced a plan today to increase corporate responsibility
and auditor accountability.
The proposal would substitute the majority’s weak Financial
Accounting Standards Board Act with a tough plan (HR 3970,
Truth and Accountability in Accounting Act of 2002) that
addresses several of the most significant issues raised by the
corporate governance scandals. This includes requiring that
CEOs and CFOs attest to the truth and accuracy of their
company’s financial statements and holding senior management
accountable for their companies’ internal controls and audit
procedures.
In addition, the plan would also establish a 7-year
mandatory document retention standard for accounting firms and
would mandate auditor independence and rotation. Finally, a
new, independent regulatory board would be created to oversee
the development of auditing standards. This board would also
receive new investigative and enforcement powers to oversee
these new protections.
The majority’s proposal would burden the Financial
Accounting Standards Board by requiring it to conduct detailed
and comprehensive reports on the use of accounting standards
by the business community without providing it with the
additional funding needed to ensure businesses complied with
these requirements.
“This is another example of the House leadership talking
big, but legislating small,” said Rep. DeGette. “Instead of
offering a toothless bill to make people think Congress is
acting, we should pass a meaningful plan that will help
prevent another Enron or another WorldCom from happening in
the future.” | 
