CalCPA weighs in on audit firm rotation legislation in congress.
Position | YOUR VOICE IN THE CAPITOL |
CalCPA, in conjunction with the AICPA and other state CPA societies, has written to members of the House of Representatives urging their support for House Resolution 1564, the Audit Integrity and Job Protection Act. This legislation would limit the ability of the Public Company Accounting and Oversight Board (PCAOB) to implement mandatory audit firm rotation for public company auditors.
In recent years the PCAOB has considered the idea of implementing mandatory audit firm rotation, going so far as to open the issue up for debate. In response, the PCAOB received an overwhelming negative response with many comments indicating that mandatory audit rotation will impact audit quality negatively, and lead to increased audit fees and...
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