PCAOB Expected to Issue Mandatory Auditor Rotation Proposal

by

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

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: