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.
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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.
