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U.S. Securities and Exchange Commission

Comments on Proposed Rule:
Revision of the Commission's Auditor Independence Requirements

[Release Nos. 33-7870; 34-42994; 35-27193; IC-24549; IA-1884; File No. S7-13-00]

Author: Roy Coles at Internet Date: 09/30/2000 8:37 PM Normal TO: RULE-COMMENTS at 03SEC Subject: File No. 57-13-00 ------------------------------- Message Contents Gentlemen: I strongly support the separation of audit companies from consulting companies. Combining the two functions in one entity represents a conflict of interest and leads to decisions being made based on economics rather than what is correct. Hard evidence of collusion between the two operations will be almost impossible to prove because a firm will do its utmost to prevent such evidence from becoming available, even to the extent of settling a possible case with the proviso that the evidence be sealed. You are are to be commended for raising this issue, and you should pursue it to a successful conclusion. Sincerely, Roy D. Coles New Orleans, LA

Author: "Frank Gollatz" at Internet Date: 09/30/2000 5:04 PM Normal TO: RULE-COMMENTS at 03SEC Subject: Re: File No. S7-13-00 ------------------------------- Message Contents ----- Original Message ----- From: Rule-Comments To: J FRANK GOLLATZ Sent: Monday, September 11, 2000 12:59 PM Subject: Re: File No. S7-13-00 > please provide your name within the body of your comment. thanks. > > > ______________________________ Reply Separator _________________________________ > Subject: File No. S7-13-00 > Author: "J FRANK GOLLATZ" at Internet > Date: 09/09/2000 9:41 AM > > > Any accounting firm performing an audit that also provides consulting services > to the company being audited is like having the fox guarding the chicken coop. > In some respects, it's even worse since due to non-disclosure clauses in > settlements no one can even say that there are fewer chickens than yesterday > warn others about the situation. > These functions must be separated. > There must be auditor indepedence. Frank Gollatz >