Before they can audit a company, firms will be required to discuss the potential effects of relationships they may have with the company or staff engaged in financial reporting roles
The US audit oversight board has adopted new rules which compel a firm to declare all relationships it or its affiliates may have with a company that it may audit.
According to the Public Company Accounting Oversight Board, the declaration must be made in writing to the audit committee and must include any details relating to relationships the firm may have with any company personnel in a financial reporting oversight role, that could impact on the firm's independence.
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