CAQ Alert 2021-02: Amendments to SEC Independence Rules

The Securities and Exchange Commission (SEC) approved amendments to certain auditor independence requirements in Rule 2-01 of Regulation S-X in October 2020. These amendments are effective June 9, 2021. Voluntary early compliance is permitted after December 11, 2020 (the date the amendments were published in the Federal Register) in advance of the effective date provided that the final amendments are applied in their entirety from the date of early compliance.

The final SEC amendments modernize the rules and more effectively focus the independence analysis on relationships and services that may pose threats to an auditor’s objectivity and impartiality. The amendments were informed by decades of staff experience applying the auditor independence framework.

This Alert provides an overview of the amendments to assist auditors and other stakeholders with understanding and applying the independence rules and the key changes included in the amendments. Download this Alert now to further explore:

• Auditor Independence Is Fundamental to Audit Quality | What hasn’t changed
• Overview of the Amendments | Key changes
• Final Rule 2-01 Marked for Changes | An appendix drafted by the CAQ for informational purposes

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