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PCAOB proposes to amend rule governing associated person liability

eople walk along Liberty Street in lower Manhattan
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Rule 3502 stipulates the liability of associated persons who contribute to a registered public accounting firm’s violations.

On Tuesday, the Public Company Accounting Oversight Board (PCAOB) issued a proposal that would update a nearly 20-year-old rule to allow the agency to hold associated persons accountable when they negligently, directly, and substantially contribute to firms’ violations.

Issued for public comment, the proposal would amend PCAOB Rule 3502 or the Responsibility Not