FOR IMMEDIATE RELEASE                                    2000-76
                                
                                
           Chairman Arthur Levitt Issues Statement on
           The Report and Recommendations of the Panel
                     on Audit Effectiveness
                                
     Washington, DC, June 6, 2000 -- Securities and Exchange
Commission Chairman Arthur Levitt today issued the following
statement on the Report and Recommendations of The Panel On Audit
Effectiveness:
     
       I thank the Panel on Audit Effectiveness for its
       important work and the significant recommendations
       it has issued in its exposure draft.  From
       auditing standards to profession oversight, the
       Panel has issued thoughtful proposals that in the
       words of Chairman O'Malley, "will result in more
       effective audits.."
       
       Implementation of the specific recommendations
       made by the Panel to improve the audit process
       through more comprehensive and vigorous audit
       methodologies and standards will engender greater
       confidence among investors that they are receiving
       high-quality audits.
       
       I also commend members of the Panel for their
       proposals to improve the self-regulatory framework
       of the profession.  The Panel's call for a system
       of governance unified under a strengthened,
       independent Public Oversight Board is both
       necessary and past due.  In addition,
       strengthening the peer review process and
       increasing outside membership on the Independence
       Standards Board will more fully serve the public
       interest.
       
       On the issue of non-audit services and its impact
       on auditor independence, I appreciate the
       challenging and lengthy considerations the Panel
       undertook.  The report makes clear the "wide-
       ranging perspectives" on this difficult issue.
       
       We look forward to working with the Panel, the
       profession, standard setters and audit committees
       to act on these recommendations in short order.
       Through the ongoing work and cooperation of all
       interested parties, we can ensure that effective,
       independent audits of financial statements will
       continue to be at the foundation of financial
       reporting in this country.
       

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