SEC Determines PCAOB Appropriately Organized


Washington, D.C., April 25, 2002 - Today the Securities and Exchange Commission and the Public Company Accounting Oversight Board announced that the PCAOB has been determined to be appropriately organized and has the capacity to carry out the requirements of the Sarbanes-Oxley Act.

"As the founding members of the PCAOB, Charles Niemeier, Dan Goelzer, Kayla Gillan and Bill Gradison have each done an outstanding job over the past four months to lay a strong foundation for the important work that is before them. Each should be commended for their commitment to the Board's mission and dedication to the interests of investors.

"The SEC's determination today is a landmark in the pursuit of stronger investor protections, and my fellow Commissioners and I look forward to working with the Board members towards improving the integrity of the audit process and the credibility of financial reporting," said SEC Chairman William H. Donaldson.

"Today's action by the SEC is an important milestone," said PCAOB Acting Chairman Charles D. Niemeier. "With this determination, the Public Company Accounting Oversight Board can move forward with its vital work of ensuring that auditors of public companies meet the highest standards of quality, independence and ethics. We are pleased that the SEC has endorsed the Board's work to date, and we look forward to continuing our joint mission to assure investors that they are participating in the best and fairest capital markets."

The SEC's action is pursuant to section 101(d) of the Sarbanes-Oxley Act, which provides for the Commission to determine whether the PCAOB is appropriately organized and has the capacity to carry out the requirements of the Act and to enforce compliance with the Act by registered public accounting firms.

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