FOR 40 YEARS THE SECURITIES AND EXCHANGE COMMISSION (SEC) HAS ENTRUSTED THE SETTING OF STANDARDS OF FINANCIAL REPORTING FOR CORPORATE BODIES TO PRIVATE ACCOUNTING BODIES, MOST RECENTLY THE FINANCIAL ACCOUNTING STANDARDS BOARD, WITH THE SEC MONITORING AND EVALUATING SUCH EFFORTS TO ENSURE THAT GOVERNMENT AND PUBLIC INTERESTS ARE BEING MET BY THE STANDARDS DEVELOPED. WHILE THERE HAVE BEEN FAILURES UNDER SUCH A SYSTEM OF REGULATION, THEIR PERCENTAGE HAS BEEN SMALL AND NOT DIRECTLY ATTRIBUTABLE TO THE NATURE OF THE REGULATORY SYSTEM. WHATEVER CHANGES NEED TO BE MADE TO CORRECT PAST INADEQUACIES CAN BE MADE WITHIN THE EXISTING SYSTEM FOR DEVISING AND PROMULGATING STANDARDS. WHILE THE SUBCOMMITTEE'S STAFF REPORT, 'THE ACCOUNTING ESTABLISHMENT,' NOTES WEAKNESSES THAT NEED TO BE REMEDIED, ITS RECOMMENDATION THAT A NEW GOVERNMENT BODY BE ESTABLISHED TO PROMULGATE STANDARDS FOR FINANCIAL REPORTING IS AN UNNECESSARY STEP THAT COULD UNDERMINE THE VALUES OF THE EXISTING NETWORK FOR STANDARD-SETTING AND CHANGE EFFORTS ALREADY UNDERWAY. THE PRIVATE ACCOUNTING SECTOR HAS SHOWN A GENERAL CREDIBILITY AND COMMITMENT TO SERVING THE INTEGRITY OF FINANCIAL REPORTING AND THE PUBLIC INTEREST SUCH THAT ITS AUTHORITATIVE INPUT IN THE CREATION OF STANDARDS FOR FINANCIAL REPORTING CAN BE TRUSTED TO SERVE THE GOVERNMENT AND THE PUBLIC WELL IN THE FUTURE.