From: jennifer carty [jennifercarty@hotmail.com]
Sent: Monday, July 15, 2002 9:24 PM
To: rule-comments@sec.gov
Cc: kwhawkins@ualr.edu; jennifercarty@hotmail.com
Subject: Public Accountability Board (s7-24-02)


To Whom it May Concern,

The accounting profession and the world of business has turned upside down 
with the recent business debacles.  The only way to recover and restore 
investor confidence is to try to ensure that all measures possible will be 
taken to prevent this from happening.  How do we do that?  Is the Public 
Accountability Board the answer?  I do not believe this is the answer.  Can 
a board, full of members without extensive accounting backgrounds, prevent 
material misstatements or fraud?  For that matter, does this board even know 
what to look for.  The board will have no effect on managements' business 
ethics or internal controls.  These are areas where problems originate.  The 
blame for recent events can not be shifted to one party.  All parties 
involved are responsible and one big problem for auditors is independence.  
Big clients are large revenue sources for the firms.  Independence will 
always be affected because auditors are being paid by a client.  This is 
where the focus needs to be.  The thought of developing a Board that will 
not be heavily occupied by accountants is somewhat offensive.  How can this 
board regulate something that is doesn't have an extensive understanding of? 
  What message does this send?  Does the SEC no longer have faith in the 
profession?  What happens when this board fails to detect another "Enron"?  
What message will that send to investors?  I do believe this Board might 
have the capability to prevent the scandals from becoming as huge as Enron, 
but will investor confidence be spared?  The solution of a Public 
Accountability Board only leaves me with more doubts and questions then 
answers and reassurance.

J. House
Accounting Major, MBA Student

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