Benefits Of Mandatory Auditor Rotation Remain In Doubt

Law360, New York (August 26, 2011, 6:08 PM EDT) -- In a bid to reduce conflicts of interest and accounting fraud, the nation's top accounting oversight board recently put forward a proposal that would require companies to change auditors every few years, but attorneys say the idea's costs far outweigh its potential benefits.

Earlier this month, the Public Company Accounting Oversight Board issued a concept release on a proposal that seeks to limit the number of consecutive years an auditor can review a corporate client's books. PCAOB Chairman James R. Doty, said that implementing mandatory auditor...
To view the full article, register now.