PCAOB Expected to Issue Mandatory Auditor Rotation Proposal


The Public Company Accounting Oversight Board could consider mandatory auditor rotation under a "concept release" expected soon, addressing some companies’ practice of maintaining relationships with the same audit firms, often for decades. 

Under current rules, the partner on an accounting job must be switched every five years, but there are no requirements that accounting firms themselves be rotated.  This policy has raised questions about just how independent such auditors are, and therefore, how useful the audited financial information can be.

Via the Chicago Tribune


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