Board to Consider Adopting New Ethics and Independence Rule
The Public Company Accounting Oversight Board has scheduled an open meeting for Tuesday, April 22, at 9:30 a.m. in the Board's open meeting room at 1666 K St. NW, Washington, DC.
The Board will consider adopting Rule 3526, Communication with Audit Committees Concerning Independence, which would supersede the Board's interim independence requirement, Independence Standards Board Standard No. 1, Independence Discussions with Audit Committees. The rule would require a registered public accounting firm to communicate to an issuer's audit committee about any relationships between the firm or any of its affiliates and the issuer or persons in financial reporting oversight roles at the issuer that may reasonably be thought to bear on the firm's independence. The communication would be required both before the firm accepts a new engagement pursuant to the standards of the PCAOB and annually for continuing engagements.
In addition, the Board will consider adopting an amendment to Rule 3523, Tax Services for Persons in Financial Reporting Oversight Roles, that would exclude from the scope of the rule tax services provided during the portion of the audit period that precedes the beginning of the professional engagement period.
The meeting will be open to the public and Webcast via a link on the PCAOB's Web site (www.pcaobus.org) that will be made available the day of the meeting. The meeting also will be available via Podcast later in the day.