The American Institute of Certified Public Accountants, the Securities Industry Association and the Bond Market Association announced today that they have begun discussions concerning auditors’ participation in underwriters’ due diligence.

The AICPA stated that the prior discussion draft on this subject has been put aside. The SIA and BMA had opposed that earlier draft because it contemplated effectively ending auditors’ participation in the due diligence process.

They claimed that this would have undermined investor protection. Today, the AICPA, the SIA and the BMA agreed that the guiding principle in any new proposals will be the protection of investors and the capital markets.

The three associations said it is expected that these discussions will also involve other interested parties, including investors, issuers and regulators.