The U.S. Securities and Exchange Commission and the American Institute of Certified Public Accountants are getting together to form an self-regulatory group to oversee the accounting profession.

The move comes in the wake of the bankruptcy of Enron Corp. and revelations regarding the involvement of its auditor, Arthur Andersen LLP. This model would affect all firms doing SEC audits.

While the current self-regulatory model provides for significant public oversight over the peer review process, there is no public oversight over discipline. Under the new model being explored, there would be significant public participation in the peer review and disciplinary systems for members and firms auditing SEC registrants.

Members of the public, rather than the profession, would be the majority of its members. The new body aims to improve the profession’s peer review and disciplinary process, boosting public participation, transparency, effectiveness, and timeliness. The new system would enhance the reviews for the largest firms, requiring a more rigorous and continuous form of monitoring the quality of the audit process. The reviews would be administered by the staff of the new board.