The PCAOB issued new guidance for communications with audit committees. The guidance applies when an auditor has identified a violation of the independence rules.
Independence-related communications with audit committees required under PCAOB Rule 3526(b) when an auditor has identified a violation of independence rules.
We believe that the PCAOB staff intended that the guidance be implemented for all applicable PCAOB Rule 3526(b) communications occurring on or after May 31, 2019.
This new guidance for compliance with Rule 3526(b) provides auditors with additional technical assistance needed to foster timely and robust communications between the auditor and the audit committee regarding independence matters.
If the auditor and audit committee separately determine that the auditor’s ability to remain objective and impartial in its judgments has not been impaired, either in fact or from the perspective of a reasonable investor:
The PCAOB staff guidance, which includes summary observations and questions and answers, has an example of a disclosure that could be provided to the audit committee by the auditor when the auditor has determined that, notwithstanding the violation, it has retained its ability to remain objective and impartial in its judgments.