House votes to prohibit mandatory audit firm rotation 

    Published July 12, 2013

    The U.S. House of Representatives has approved legislation that would prohibit the Public Company Accounting Oversight Board (PCAOB) from requiring mandatory audit firm rotation. The July 8 vote on the Audit Integrity and Job Protection Act, H.R. 1564, was 321 to 62. The PCAOB has been considering auditor rotation since 2011. The Financial Times’ Tracy Alloway wrote that, “The PCAOB proposal was met with heavy criticism and lobbying from the accounting and financial industry, which said there was little evidence that switching auditors would help prevent future scandals.” The paper reported that AICPA President and CEO Barry Melancon, CPA, CGMA, welcomed the result of the House vote. “In the absence of evidence that mandatory audit firm rotation would enhance audit quality, the House has sent regulators in the United States and Europe a clear message that the time has come to end the debate over rotation,” he said.




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