New auditor independence rules taking effect are compelling audit committees to update their proxy reports and their charters.

Howard Berkenblit, an attorney with Sullivan & Worcester, said a number of audit committees are just getting up to speed on what they need to do to comply with the new rule, and they’re finding it requires some quick document editing.

“The new rule doesn’t change audit committees’ duties at all, but it is catching some people’s eyes because a lot of audit committee charters and proxies refer to the old rule,” he said. “If the documents refer to the old standard, you have to update those to refer to the new standard.”

The Public Company Accounting Oversight Board adopted Ethics and Independence Rule 3526 to require audit firms to provide audit committees with dialogue and written disclosure about where they may have relationships that could affect the firm’s independence. The rule places the burden of disclosure on the audit firm, not the audit committee, said Berkenblit, but it does require the audit committee to take note of how its communication with audit firms will change as a result of the rule and to update their proxies and charters to reflect the new rule.

As a result of the new rule, the Securities and Exchange Commission adopted a conforming change to proxy rules so that audit committee reports need to make reference to the PCAOB’s independence rules. The rules do not require audit committees to reference the rule by name and number, however, to simplify things in the event of future rule changes, Berkenblit said. However, firms need to check their documentation, the law firm advises, to assure it reflects the current rules.