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ARTICLE · 02 OCTOBER 2017

Auditor Independence No-Action Relief Extended

Morrison Foerster
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Rule 3520 adopted by the Public Company Accounting Oversight Board (PCAOB) requires an auditing firm and its associated persons to be independent of their audit clients.

United StatesAccounting and Audit
Kelley Howes
Kelley Howes
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In a letter dated September 22, 2017, the SEC staff agreed to extend previous relief that enables registered fund groups to fulfill regulatory requirements under Regulation S-X if the accounting firm auditing the funds' financial statements is not in compliance with Rule 2-01(c)(1)(ii)(A) of Regulation S-X (the "Loan Provision").

Rule 3520 adopted by the Public Company Accounting Oversight Board (PCAOB) requires an auditing firm and its associated persons to be independent of their audit clients.  Under the PCAOB's rules, audit firms are required to provide prospective clients with a written description of the relationships existing between the auditor and its clients.  Auditors make similar representations to existing clients annually.

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