The PCAOB proposed rules that identify specific circumstances in which providing tax services impairs auditors' independence.

The PCAOB proposed rules that identify specific circumstances in which providing tax services impairs auditors' independence; increase auditors' responsibility for obtaining audit committee preapproval of tax services rendered to audit clients; prohibit persons associated with an audit firm from causing it to violate relevant laws, rules and regulations; and include certain definitions integral to observing the rules (www.pcaobus.org/rules_of_the_board/documents/docket_017/release 2004-015.pdf). The board will consider comments, which are due February 14, 2005, before adopting the rules, which it will submit to the SEC for approval as required by section 107 of the Sarbanes-Oxley Act.