Why is independence often considered the cornerstone of the auditing profession? Why were independence issues a primary concern of Congress when they developed the Sarbanes-Oxley Act?
The scope of services provisions do not extend to services provided to non-audit clients.
The final rules provide accounting firms with a limited exception from being deemed not independent for certain inadvertent independence impairments if they have quality controls and satisfy other conditions.
Finally, the amendments require most public companies to disclose in their annual proxy statements certain information related to, among other things, the non-audit services provided by their auditor during the most recent fiscal year.
Registrants must comply with the new proxy and information statement disclosure requirements for all proxy and information statements filed with the Commission after the effective date.
Executive Summary We are adopting amendments to our current rules regarding auditor independence.
To do so, and to promote investor confidence, we must ensure that our auditor independence requirements remain relevant, effective, and fair in light of significant changes in the profession, structural reorganizations of accounting firms, and demographic changes in society.
Nearly half of all American households are invested in the stock market. These and other market changes highlight the importance to the market and to investor confidence of financial information that has been audited by an auditor whose only master is the investing public.
Accounting firms have woven an increasingly complex web of business and financial relationships with their audit clients. The nature of the non-audit services that accounting firms provide to their audit clients has changed, and the revenues from these services have dramatically increased.
In addition, there is more mobility of employees and an increase in dual-career families. We proposed changes to our auditor independence requirements in response to these developments.
As more fully discussed below, we are adopting rules, modified in response to almost 3, comment letters we received on our proposal, written and oral testimony from four days of public hearings about 35 hours of testimony from almost witnessesacademic studies, surveys and other professional literature.
Independence generally is understood to refer to a mental state of objectivity and lack of bias. The proposed amendments to Rule included in the rule four principles for determining whether an accountant is independent of its audit client. While some commenters supported our inclusion of the four principles in the rule, 15 others expressed concerns about the generality of these principles and raised questions concerning their application to particular circumstances.
The amendments identify certain relationships that render an accountant not independent of an audit client under the standard in Rule b.
The relationships addressed include, among others, financial, employment, and business relationships between auditors and audit clients, and relationships between auditors and audit clients where the auditors provide certain non-audit services to their audit clients.
Financial and Employment Relationships. We believe that independence will be protected and the rules will be more workable by focusing on those persons who can influence the audit, instead of all partners in an accounting firm.
Accordingly, we proposed to narrow significantly the application of these rules. Commenters generally supported our efforts to modernize the current rules because they restrict investment and employment opportunities available to firm personnel and their families in ways that may no longer be relevant or necessary for safeguarding auditor independence and investor confidence.USA's largest education network.
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* This table does not represent the complete set of 's issued during the fiscal year as some 's were manually prepared and not available in this format. Top 5 CPA Review Courses Comparison. Below, you will find a more extensive and comprehensive list of the best CPA review courses In comparing CPA review courses, I've considered top rated CPA review courses, CPA review courses reviews, live CPA review courses, online CPA review courses, and cheap CPA review courses.
Search the world's information, including webpages, images, videos and more. Google has many special features to help you find exactly what you're looking for. Fall Spring Fall Fall Final Exam Week: December 3 - December 8, (Session C classes) Except to resolve those situations described below, no changes may be made in this schedule without prior approval of the dean of the college in which the course is offered.