The Securities and Exchange Commission and the American Institute of Certified Public Accountants have agreed to wind up the Independence Standards Board, effective July 31.

The ISB was created in 1997 through an agreement between the SEC and the AICPA to initiate research, develop standards, and engage in a public analysis and debate of auditor independence issues. Much of the ISB’s work was incorporated into the SEC’s new auditor independence rules, which were adopted in November 2000.

With the adoption of the SEC’s new rules and the strengthening of the AICPA’s Professional Ethics Executive Committee through the addition of public members, all parties agreed that the ISB has largely fulfilled its mission and that there is no longer a need for it.

Acting SEC chair Laura Unger said, “The commission’s auditor independence rulemaking would not have been possible without the foundation laid by the ISB.” Barry Melancon, AICPA president and CEO, also applauded the ISB’s work. ISB chairman William Allen said, “The members and staff of the ISB are proud of the work that the ISB was able to initiate and accomplish. We worked hard on controversial issues to address the concerns of public investors, the accounting profession, and the SEC.”