Regulatory Alerts2020-12-11 | 2020-23364Added
Qualifications of Accountants
The Securities and Exchange Commission adopted amendments to Rule 2-01 of Regulation S-X to update auditor independence requirements by focusing the analysis on relationships likely to threaten objectivity. The final rule modifies definitions of affiliate of the audit client and investment company complex to include materiality qualifiers, thereby excluding less significant sister entities from independence restrictions. Additionally, the amendments clarify rules regarding loans, debtor-creditor relationships, and inadvertent violations arising from mergers and acquisitions.
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