United States:
Federal Register: SEC Amends "Auditor Independence" Rules
18 July 2019
Cadwalader, Wickersham & Taft LLP
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SEC amendments to auditor independence rules were published in the Federal Register. Rule 2-01(c)(1)(ii)(A) of Regulation S-X (the
"Loan Provision") changes the interpretation of
"auditor independence" when an auditor has a lending
relationship with the shareholders of an audit client.
As previously
covered, the Loan Provision amendments are intended to better identify
debtor-creditor relationships that could impair an auditor's
ability to be objective. The amendments will become effective in 90
days.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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