New ethics, independence rules on tax services, contingent fees.

• Position: PCAOB News

The PCAOB has adopted new ethics and independence rules addressing tax services, contingent fees, and certain related general ethics and independence standards.

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The board also adopted Auditing Standard No. 4, which establishes requirements that apply 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 new rules identify three circumstances in which the provision of tax services impairs an auditor's independence. A public accounting firm will be treated as not independent of their audit clients if they:

* Enter into contingent fee arrangements...