SEC and PCAOB Independence Rules

Free CPA AUD (Auditing & Attestation) lesson in Ethics, Professional Responsibilities and General Principles. 15 min read, ~2,312 words.

SEC Rule 2-01 of Regulation S-X sets issuer independence: four guiding principles (no mutual interest, no self-review, no management role, no advocacy) plus nine prohibited non-audit services. Sarbanes-Oxley §201 lists the nine bans: bookkeeping, IT systems, valuation, actuarial, internal audit, management/HR, investment services, legal services, plus a PCAOB catch-all. §203...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• I.A2

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