Firms Push SEC to Ease Auditor Independence Rules

July 10, 2018, 3:36 PM

Large accounting firms want the Securities and Exchange Commission to relax auditor independence rules that bar them from auditing their consulting clients and affiliates, among other changes.

The requests are detailed in public comment letters submitted to the SEC regarding a change to independence rules narrowly focused on loosening lending prohibitions between auditors and their clients.

Some investors pushed back against the changes, asking the SEC instead to reinforce the rules to better promote firm governance and transparency.

The SEC proposal would roll back the scope of what is known as the loan provision—auditors can’t borrow money from their clients—and ...

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