Yesterday 6, Communication with Audit Committees Concerning Independence. The new Rule would supersede the Board’s interim requirement (Independence Standards Board Standard No. 1, Independent Discussions with Audit Committees) and two related interpretations. Specifically, the proposed Rule would require a registered public accounting firm to inform an issuer's audit committee about any relationships between the firm and the issuer that would reasonably bear on the firm's independence. The communications would take place before the firm accepts a new engagement and annually for continuing engagements.
In addition, the Board proposed amending Rule 3523, Tax Services for Persons in Financial Reporting Oversight Roles, to exclude from its scope the portion of the audit period preceding the beginning of the professional engagement. The Board is seeking comments on both proposals for a 45-day period, ending on September 7, 2007. More information is at pcaobus.org.
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