AICPA pleased with new PCAOB independence and tax services rules, and remediation standard.

Saying the Public Company Accounting Oversight Board was "very receptive to our members' comments and accepted most of our recommendations," the AICPA stated it was generally pleased with the PCAOB's adoption of recent new rules and a standard on July 26. The new rules focus on ethics and independence concerning auditor independence, tax services and contingent fees, and the auditing standard addresses reporting on the remediation of material weaknesses.

PCAOB Auditing Standard No. 4 establishes requirements and provides direction that applies when an auditor is engaged to report on whether a previously reported material weakness in internal control over financial reporting continues to exist as of a date specified by management. The ethics and independence rules identify three circumstances in which the provision of tax services impairs an auditor's independence as well as other conditions to ensure independence.

The roles will not take effect unless approved by the Securities and Exchange Commission. Background information is available at www.pcaobus.org under "Rulemaking Docket."