Top accounting firm leaders will have to certify that safeguards meant to deliver sound audits work as intended under a sweeping overhaul of governance requirements the SEC approved on Monday.
The largest US audit firms will have to set up independent oversight of guardrails intended to mitigate risks firms face in their daily practice that could undermine audit quality, such as overworked auditors or risky clients, under new audit rules the Securities and Exchange Commission voted 3-2 to finalize. The new standard replaces foundational requirements for how firms manage their audit practices, known as quality controls, that were written by ...