Auditors take note: from now on, you will have to tell audit committees all about compromising links BEFORE you do any work for them.

As expected, the Public Company Accounting Oversight Board has brought in the new Rule 3526 requiring the audit firm "to describe in writing to the audit committee all relationships between the firm or any of its affiliates and the issuer or persons in a financial reporting oversight role at the issuer that may reasonably be thought to bear on the firm's independence. Registered firms will also be required to discuss with the audit committee the potential effects of any such relationships on the firm's independence."

They will also be required to do it annually.

The new rule aims to increase some badly needed transparency. It's not before time and it's just common sense, PCAOB board member Daniel L. Goelzer told CFO.com's Alan Rappeport.

"The new rule will make sure that audit committees have the relevant independence information in front of them when they select the auditor, not after they have already made the decision and the work has begun."

The new rule, which still has to be approved by the Securities and Exchange Commission, will come in on September 30, 2008, or 30 days after SEC approval.