Exposure Draft Issued on Modernized Independence Rules.

In an effort to modernize the profession's rules on independence, the Professional Ethics Division last month issued an exposure draft containing proposed revisions to various interpretations and rulings under Rule 101--Independence. The proposal embraces an engagement-team focused approach to independence which extends to those who can influence the engagement, an approach already supported by other independence standard-setters and regulators, such as the Securities and Exchange Commission, Independence Standards Board, and International Federation of Accountants.

Members and other interested parties are encouraged to comment on this important proposal. Comments on the exposure draft will be accepted through July 16, 2001. This exposure draft is available at www.aicpa.org/members/div/ethics/omnibus.htm.

In connection with issuance of the exposure draft, the Professional Ethics Executive Committee has launched a video accessible over the Internet to facilitate an understanding of the issues and the impact of the proposal on firms. This Web cast can be viewed free of charge at www03.activate.net/aicpa/ modern/010416/registration.asp between now and July 16.