The Public Company Accounting Oversight Board has codified its final views on how auditors should maintain their independence from tax services, after a three-year debate over unintended consequences.

In a meeting last week, the Board adopted an amendment to Rule 3523, Tax Services for Persons in Financial Reporting Oversight Roles, narrowing the timeline on tax services that a firm cannot provide to an audit client to preserve independence or to avoid an apparent or actual conflict of interest. As originally adopted, the rule said an auditor would not be regarded as independent if the firm provides tax services to those close ...