The U.S. regulator for auditors is formally considering whetherto force public companies to routinely replace the firms that audittheir financial disclosures.
The Public Company Accounting Oversight Board voted 5-0 today toopen a public comment period on the idea of establishing termlimits for auditors. Proponents said such restrictions mayeliminate inappropriate company influence on long-termauditors.
“The long association of the largest audit firms with theirmajor audit clients is an issue that must be addressed in order tofulfill the mission of the PCAOB,” said Chairman James R. Dotybefore the vote. Mandatory rotation of auditors should beconsidered because of “the very size, complexity and systemic riskfound in today's issuer population,” Doty said.
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