Federal Register: SEC Amends "Auditor Independence" Rules

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 on October 3, 2019.