The US audit oversight board has adopted new rules which compel a firm to declare all relationships it or its affiliates may have with a company that it may audit.
According to the Public Company Accounting Oversight Board, the declaration must be made in writing to the audit committee and must include any details relating to relationships the firm may have with any company personnel in a financial reporting oversight role, that could impact on the firm's independence.
The firm will also be required to hold discussions with the audit committee about what the potential effects of any such relationships could have on the firm’s independence.
Further reading:
Board Adopts New Ethics and Independence Rule Concerning Communications with Audit Committees
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