Date:    8/10/98  5:44 PM
        
  Subject: File No. S7-16-98
          
  Jonathan Katz:

  I have read the proposed SEC amendment to Rule 102(e) and would like to voice my
  concern.  I find the proposed reaction to Court of Appeals decision in the
  Checkosky v. SEC an "overkill".  It limits the accountant's judgement and places
  all accountants in jeopardy by severly limiting the accountant's ability to
  exercise judgement.  This far-reaching proposal will cause harm to all
  accountants by inviting future court action whether the SEC is involved or not.

  In short, this is not a good answer to the problems with Rule 102(e).

          Howard McElroy