On Wednesday and Thursday, what’s likely to be a robust discussion on audit firm rotation for public companies in the United States kicks off. Meanwhile, markets will get a glimpse of the U.S. housing situation, and FASB and the International Accounting Standards Board (IASB) will meet in London to discuss insurance contracts Tuesday.
U.S. audit firm rotation
One of the most hotly contested issues in accounting and auditing will be debated when the PCAOB holds an open meeting on auditor independence and audit firm rotation on Wednesday and Thursday in Washington.
The PCAOB’s Aug. 16 concept release asked stakeholders to consider mandatory audit firm rotation as a means to bolster auditor independence and skepticism. Critics, including the AICPA, have raised concerns about mandatory rotation, citing studies that conclude rotation is costly for companies and has the potential to hinder audit quality.
Former U.S. Comptroller General Charles Bowsher, former SEC Chairman Richard Breeden, and former Federal Reserve Chairman Paul Volcker will open the meeting, which will be available via webcast on the PCAOB’s site, at 8:30 a.m. EDT Wednesday. Business leaders, including directors from Dell Inc. and SanDisk Corp., will join public accounting and audit firm CEOs and educators on the roster of speakers.
The comment period has been extended until April 22; comments can be sent from the PCAOB’s website.
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