From: Daniel102053@aol.com
Sent: Friday, July 05, 2002 1:45 AM
To: rule-comments@sec.gov
Subject: Accounting Woes - Possible Solution

I realize you are the SEC but two things can be done to take some of the sting out of these
revelations of late. 

1)  Take away the book and tax differences in regards to depreciation. 

2)  Limit day traders who trade under a certain volume or amount to only be able to buy and sell
under that limit once with a day or a week period of time.  Day traders care less of the capital
gains.  Back in 1995 the daily volume was around 190 million shares, today it is well over 1.2
billion shares.  Most of this is coming from day traders who are short term. It has force the corp
execs and board rooms to be short term as well. 

3)  Audit Committees:  Should be comprised of at least 3 to 4 cpa's from other cpa firms whether
national or regional. 

4)  Force a change in the cash flow statement to include a reconciliation to the companies bank
accounts.  This can be done by simply taking the accruals out of the liability accounts.   

5)  Place a limit on the amount of stock options a company can award any one employee. 

6)  Educate the public to include wall street that auditing is not primarily or remotely keyed to
finding fraud or other misstatements.  The problem is that too many companies go on capitalization
of their stock and not what their net worth is.  That is why some of this is inmaterial as long as
the stock is high and becomes highly material when the stock values go down. 

Daniel Fioranelli
367 Silverwolf Drive
Collierville, Tn. 38017
901 854 9499
901 854 3271 work number