Audit Firms Oppose Rotation

Big Four executives say term limits would hurt audit quality.

Senior executives of Ernst & Young LLP, KPMG LLP and other large accounting firms said regulators should back away from a proposal that public companies be required to rotate their auditors.

The Public Company Accounting Oversight Board, the nonprofit that regulates auditors of U.S.-listed companies, is weighing mandatory term limits to combat auditor bias toward longtime clients. Chief executives and other leading officials at the so-called Big Four firms criticized the rotation proposal today at a meeting in Washington, arguing it would hurt the quality of audits.

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