[Federal Register Volume 65, Number 112 (Friday, June 9, 2000)]
[Notices]
[Page 36693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-14609]


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FEDERAL COMMUNICATIONS COMMISSION

[DA 99-2674]


Responsible Accounting Officer--Letter 28--Re: Auditor 
Independence and Objectivity

AGENCY: Federal Communications Commission.

ACTION: Notice; announcement of OMB approval.

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SUMMARY: This document discusses the importance of independence and 
objectivity in the performance of audit work required by the Commission 
and adopts, as modified for Commission purposes, Standard No. 1 of the 
Independence Standards Board, which requires auditors to disclose and 
discuss potential independence problems.

DATES: Effective May 19, 2000.

FOR FURTHER INFORMATION CONTACT: Mark Stone, Accounting Safeguards 
Division, Common Carrier Bureau, (202) 418-0816.

SUPPLEMENTARY INFORMATION: On December 1, 1999 the Common Carrier 
Bureau, Accounting and Audits Division adopted and released a 
Responsible Accounting Officer (RAO) Letter 28, Re: Auditor 
Independence and Objectivity, a summary of which was published in the 
Federal Register. See 64 FR 71785 (December 22, 1999). In that document 
we address the independence implications for the new consulting and 
advocacy services provided by auditors. In that document the Commission 
establishes the following standard based on Independence Standards 
Board's Standard No. 1. For independent audits performed pursuant to 
part 32 and Sec. 64.901 et seq. of the Commission's rules (including 
audits, attest examinations, agreed-upon procedures engagements, and 
any other engagement required by independent auditors), the auditor 
shall at least annually: (a) Disclose to the Accounting Safeguards 
Division (ASD) of the Common Carrier Bureau in writing all 
relationships between the auditor and its related entities and the 
carrier and its related entities that in the auditor's professional 
judgment may reasonably be thought to bear on independence; (b) confirm 
in writing to ASD that in its professional judgment it is independent 
of the carrier; and (c) discuss the auditor's independence with ASD.
    We stated that ``because items in the RAO letter pertain to the 
collection of information, Office of Management and Budget (OMB) 
approval of the proposed collection is required by the Paperwork 
Reduction Act of 1995. Under the Paperwork Reduction Act, members of 
the public are not required to respond to a collection of information 
sponsored by the Federal government, and the government may not conduct 
or sponsor a collection, unless the information collection contains a 
currently valid OMB control number. Accordingly, independent auditors 
will not be required to comply with this RAO until OMB has given such 
approval. ASD will notify the public when OMB has approved the proposed 
information collection.'' The information collection was approved by 
OMB on May 19, 2000. See OMB No. 3060-0927. This publication satisfies 
our statement that the Commission would publish a document announcing 
OMB approval of proposed information collection.

Federal Communications Commission.
Kenneth P. Moran,
Chief, Accounting Safeguards Division, Common Carrier Bureau.
[FR Doc. 00-14609 Filed 6-8-00; 8:45 am]
BILLING CODE 6712-01-U