Sep 06

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PCAOB Reopens Auditor Rotation Issue

On August 16, 2011, the Public Accounting and Oversight Board (“PCAOB” – the regulator of auditors of publicly-traded companies) issued a concept release that reopens the idea that auditors of publicly traded companies should be forced to rotate/drop their clients after some lengthy period, such as ten years.  This would dramatically change the auditing business for publicly-traded companies.  This idea has been offered numerous times in the past, but each prior time the public accounting profession and its large clients have successfully beaten the proposals back.

The PCAOB’s concept release provided 21 questions for which they are seeking input.  Comments will be accepted through December 14, 2011.  A public “roundtable” is planned in March 2012.  A more detailed discussion of the underlying issues can be found here.

About the author

David Nolte

I am a founding principal of Fulcrum Inquiry, an accounting and economic consulting firm that performs damage analysis for commercial litigation, forensic accountings, financial investigations, and business valuations. I am a Certified Public Accountant (CPA) and an Accredited Senior Appraiser (ASA), as well as having other professional credentials. I regularly serve as an expert witness involving damages measurement. My litigation-oriented resume is on Fulcrum's website.

Permanent link to this article: http://betweenthenumbers.net/2011/09/pcaob-reopens-auditor-rotation-issue/

1 comment

  1. Andres

    It is a thing I have to find more information about, i appreciate you for the posting.

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