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
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TO: RULE-COMMENTS at 03SEC
Subject: File No. 57-13-00
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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
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TO: RULE-COMMENTS at 03SEC
Subject: Re: File No. S7-13-00
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----- 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
>