PwC supports the SEC’s efforts to amend its auditor independence rules with respect to lending relationships with certain shareholders of an audit client (the “Loan Provision”), and has provided comments on various elements on the proposal. PwC’s comment letter expresses its support for the SEC’s objective of increasing the effectiveness of the rule without compromising auditor objectivity and impartiality.
PwC welcomes the SEC’s proposal as it mitigates a number of significant operational challenges and conceptual inconsistencies in the existing Loan Provision. In our comment letter, PwC suggests ways to more fully achieve the SEC’s stated objectives. PwC proposes limiting the scope of entities covered by the Loan Provision to “affiliates” to avoid hardship and overreach concerns and to maintain consistency within SEC independence rules. The letter also includes detailed comments on various other elements of the proposal. PwC also provided recommendations for improvements to several other areas of the SEC’s auditor independence rules.
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