SEC Approves PCAOB Accounting Rules

Law360, New York (April 21, 2006, 12:00 AM EDT) -- Public accounting firms must remain independent of their auditor clients throughout the audit period, according to ethics and independence rules passed by the Public Company Accounting Oversight Board and recently approved by the U.S. Securities and Exchange Commission.

The rules prohibit registered public accounting firms from entering contingent fee agreements with their clients to provide tax services, on the grounds that “provision of tax services impairs an auditor’s independence.”

Any non-audit services must be pre-approved by the audit committee, in accordance with a requirement set forth...
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