By developing this new category, it is anticipated that audit standards will be developed to address the specific items in that category.

The move of the role to an independent, state-run body is seen as a more stringent approach to enforcing audit standards.

The S.E.C. noted that the institute did not have the authority to set audit standards.

Before a new audit standard may take effect, he continued, it must be subject to the board's rule-making processes and to publication for comment and approval by the commission.

The auditor will then state that they conducted the sample based upon generally accepted audit standards (GAAS) and that their sample was statistically valid.

This requirement is a new concept in audit standards and it has two primary objectives.

Provide audit services in accordance with IT audit standards to assist the organization in protecting and controlling information systems.

It is generally expected that SEC will provide specificity on both the audit standard and the auditor standard.

From the macro point of view it must be recognized that business has gone global during the time that we have been trying to achieve harmonized audit standards.

Sir,- I read with interest the letter in the November issue (p 7) in respect of audit standards and remote control audits.