By James Langton

(January 8 – 10:30 ET) – Outgoing chairman of the U.S. Securities and Exchange Commission, Arthur Levitt, has fired another goodbye salvo in a letter to corporate audit committees.

Last Friday Levitt wrote to the audit committee chairmen of the top 5,000 U.S. public companies.

In the letter Levitt reminds the committees of recently-adopted rules that strengthen the independence of audit committees and their abilities to fulfill their duty to investors, as well as enhancing disclosure among corporate boards, outside auditors and management.

“When auditors and the board engage in frank and meaningful discussions about the significant, but sometimes gray areas of accounting, both the company’s and its shareholders’ interests are served. In this way, the board, including the audit committee, management, and outside auditors form a ‘three-legged stool’ of responsible disclosure and active oversight.”

Levitt also recalled the commission’s hard fought efforts to bring in new rules ensuring auditor independence and he highlighted the recommendations of the Panel on Audit Effectiveness in its final report, released in August. He encouraged audit committees to discuss the Panel’s recommendations among themselves and with their auditors.

“During my almost eight years at the commission, I have come to believe that one of the most reliable guardians of the public interest is a competent, committed, independent and tough-minded audit committee. The audit committee stands to protect and preserve the integrity of America’s financial reporting process. I encourage your committee to take every step possible to ensure that the integrity of the financial statements, and by extension, the interest of shareholders, remains second to none.”