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PCAOB adjusts personal liability standard, FASB plans for enviro accounting

Image of an old-fashioned poster labeled "Book-keeping."
Photo: Pierce Archive LLC/Buyenlarge via Getty Images

Auditors face a greater chance of being held personally liable for negligent missteps under adjusted PCAOB rules.

The Public Company Accounting Oversight Board (PCAOB) has expanded liability for individuals involved in firm violations such as financial misstatements, lowering the personal liability standard to a showing of negligence and down from recklessness.

And the Financial Accounting Standards Board (FASB) plans to set requirements on how companies account for