Tag Archives: audit firm rotation

Franzel Summarizes PCAOB’s Work

State Board Report November 2013 Describing the addition of critical audit matters (CAM) to the auditor’s report as “a drastic change to a very standard report that has been unchanged for about 70 years,” Public Company Accounting Oversight Board Member Jeanette M. Franzel, CPA, called the Annual Meeting audience’s attention to the provisions of the…

Audit Firm Rotation Rejected by House

State Board Report August 2013 The Audit Integrity and Job Protection Act (H.R. 1564) passed 321 to 62 on July 8. This bill would prevent the Public Company Accounting Oversight Board from requiring public companies to use specific auditors or require the rotating of auditors. The United Kingdom’s Competition Commission on July 22 released a…

EU Committee Backs Rotation

State Board Report May 2013 Obligatory auditor rotation after 14 years, with a possible extension to 25 years if certain safeguards are met, is one of the recommendations approved by the European Parliament’s Committee on Legal Affairs on April 25. The Committee also voted in favor of prohibiting audit firms from offering non-audit services that…

UK Commission Suggests Competition Remedies

State Board Report March 2013 The United Kingdom’s Competition Commission on February 22 announced it has “provisionally found” an adverse effect on competition in the supply of statutory audit services to large UK companies. The Commission set out “possible remedies” and invited comments or suggestions for additional or alternative remedies to be submitted to them…

Panelists Consider Firm Rotation

State Board Report July 2012 The Public Company Accounting Oversight Board's concept release considering mandatory audit firm rotation was the topic of panel sessions at the Eastern and Western Regional Meetings. "At the heart of the PCAOB's discussions is trying to raise audit quality – but at what cost?" asked Vice Chair Gaylen Hansen (CO).…

House Subcommittee Ponders Oversight

State Board Report April 2012 Whether or not the PCAOB should have the authority to require auditor firm rotation was among the issues addressed at a March 28 hearing on “Accounting and Auditing Oversight: Pending Proposals and Emerging Issues Confronting Regulators, Standard Setters, and the Economy,” held by the Capital Markets and Government Sponsored Enterprises…

PCAOB Listens to Rotation Panels

State Board Report April 2012 The first of what may be several public meetings on auditor independence and audit firm rotation was held by the Public Company Accounting Oversight Board on March 21-22 in Washington, D.C. Opinions expressed about the PCAOB’s concept release ranged from investor groups endorsing mandatory rotation of audit firms after a…