PCAOB Looks at Auditor Term Limits

Proponents say mandatory rotation would limit company’s influence on audit firm.

The U.S. regulator for auditors is formally considering whether to force public companies to routinely replace the firms that audit their financial disclosures.

The Public Company Accounting Oversight Board voted 5-0 today to open a public comment period on the idea of establishing term limits for auditors. Proponents said such restrictions may eliminate inappropriate company influence on long-term auditors.

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