The U.S. Securities and Exchange Commission’s planned changes to auditor independence rules would loosen regulation of audit firms, giving them more discretion in assessing conflicts of interest in their relationships with companies they audit, according to people familiar with the matter. SEC Chairman Jay Clayton said on Dec. 9 that changes to auditor independence rules were a priority of the regulator in the next year. The rule was intended to prevent business relationships from jeopardizing an auditor’s independence. The PCAOB said auditor independence will be a key focus of attention for inspections in the year ahead. “I think the solution is for audit firms to do a better job of compliance.”Write to Mark Maurer at mark.maurer@wsj.com

Source: Wall Street Journal December 16, 2019 18:37 UTC