U.S. Audit Regulator Revises Independence Rules After SEC Update (1)

The U.S. audit regulator updated its conflict-of-interest rules to conform to recent SEC changes that relaxed thresholds for certain relationships and lending activities that could sway an auditor’s judgment.

The Public Company Accounting Oversight Board adopted the amendments to its auditor independence rules in a 4-1 vote Thursday. The board also approved its $287.3 million operating budget for 2021.

“These changes enhance investor protection by better equipping audit committees, issuers, and their auditors to focus on those issues that potentially pose an actual threat to an auditor’s independence,” Chairman Bill Duhnke said.

Key aspects of the Enron-era rules remain, ...