Comments on audit firm rotation don’t end at hearings
After two days of testimony in Washington, here's what we know about mandatory audit firm rotation:
- Lots of people love it.
- Lots of people hate it.
- It'll be a while before the PCAOB decides which way it's going to go.
Comment letters will be accepted through April 22.
For the record, MACPA Executive Director Tom Hood says an Enron-era MACPA task force concluded that peer review, increased PCAOB oversight, a renewed focus on ethics, and audit partner rotation have joined forces to eliminate the need for manditory audit firm rotation.
And if you're thinking that Congress is missing a golden opportunity to chime in on the issue, think again.
Republican Rep. Mike Fitzpatrick of Pennsylvania has proposed an amendment to the Sarbanes-Oxley Act that "would say the PCAOB should have no authority under the law to require that audits be conducted by a specific auditor or that audits be conducted by different auditors on a rotating basis," Compliance Week reports.
Everything is better when Congress gets involved, isn't it?