Please ensure Javascript is enabled for purposes of website accessibility

PCAOB Member Jay Hanson Repeats His Belief That Auditor Rotation Is Not Gonna Happen

The Brits can do whatever they want; Mr. Hanson has a story and he's sticking to it:   

Having reviewed the comment letters and feedback from the round table panelists and others, it is clear to me that there is little support for mandatory audit firm rotation. As I noted in my statement when we issued the concept release, our inspection findings over the years have yielded a substantial amount of data. To date, I have not seen an analysis of this data that establishes a causal link between an audit failure and the audit firm tenure. I do not see how the Board could move forward on mandatory rotation without that causal link. I also believe mandatory rotation would be extraordinarily difficult to justify through an economic analysis of its costs and benefits.

[PCAOB]