New PCAOB takes fresh look at auditor independence

Posted 4/12/2018

The PCAOB, replete with new members, is re-examining the issue of whether auditors need new guidance on their required communication with audit committees regarding independence. The Board’s latest standard-setting agenda contains a newly initiated research project on whether the board should consider issuing guidance or revising Rule 3526, which governs when and in what manner auditors should discuss with audit committees their adherence to independence requirements under Rule 3520. The issue will be examined by a full five-member board, with Duane DesParte bringing it up to full membership again, under Chairman William Duhnke. The other members are Kathleen Hamm, a former leader at regulatory advisory services firm Promontory Financial Group, J. Robert Brown, who was teaching corporate and securities law at the University of Denver law school when he was tapped, and James Kaiser, a retired PwC audit partn er.

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