Skadden Discusses Proposed SEC Amendments to Auditor Independence Rules

On December 30, 2019, the Securities and Exchange Commission (SEC) announced proposed amendments to its auditor independence requirements. Comments on the proposed amendments will be due 60 days after publication in the federal register, meaning comments likely will be due by the beginning of March 2020. If approved, these proposed amendments would significantly modify the framework that public companies and their auditors use to evaluate auditor independence, providing additional clarity for certain particularly difficult and recurring issues. The proposed amendments principally focus on complications that arise from auditor independence assessments with respect to affiliates of the audit client. Such issues … Read more