Changes to Auditor Independence Regulations: US vs. UK

Regulators in both the U.S. and the U.K. have recently debated changes to rules regarding auditor independence, with one big difference. In the U.S., the Securities and Exchange Commission (SEC) has proposed further loosening of auditor independence rules, while in the U.K., the Financial Reporting Council (FRC) has issued revised auditing standards aimed at strengthening auditor independence.

In this article, Audit Analytics reviews the anticipated changes proposed by the SEC and revised standards implemented by the FRC, outlining the background of auditor independence regulations contributing to the contrasting courses of action.