Promising changes to an inefficient and ineffectual auditor independence rule are still awaiting a move from the Securities and Exchange Commission, audit committee directors and mutual fund, reports Fund Directions in an article titled “Directors advocate loan rule amendments amid regulatory silence,” published on May 23.
The amendments to the loan provision of Regulation S-X potentially reduce the amount of paperwork fund audit committees must review during the auditor selection process by decreasing the number of situations in which an auditor may be found to be in violation of independence rules.
“Directors…really do want to be efficient, so that they can direct their attention where it really needs to be,” says asset management partner Brian McCabe in the piece. “The more relatively unimportant things you’re paying attention to, the greater the likelihood is that you won’t be devoting as much time as you wanted to stuff you think is really important.”
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