Alright, you guys. Next time you have an encounter like this one that Adam Blitz writes about, I want you to contact us immediately: I recently went to an event with a few managing partners from some local accounting firms. The size of the firms ranged from eight to 30 professionals. Each firm was a […]
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 […]
On Monday, PCAOB Chairman James Doty gave a speech where he mentioned, among other things, that "auditor term limits" was something the Board would consider in order to "protect the auditor's independence." Undoubtedly, this was disheartening news to auditors who count themselves as the Big 4 variety because they've gone on record to voice opposition and […]
When someone of the debit and credit arts is functioning in its natural habitat (e.g. a cubicle farm), instincts are acute. Within these walls, all it takes is one glance at a schedule of figures and even the youngest accountants can spot something amiss. "That Excel formula has a circular reference," one might say, or […]
If you're an opiner who has been suffering from massive memory loss or ignoring your professional purpose, don't fret. Master audit firm lobbyist Cynthia Fornelli has your playabook: “Independence, objectivity and skepticism, I think, are fundamental foundational elements of audit quality,” Fornelli said in an interview at the Accounting Today offices on Friday. Now that […]
This just in from a tipster (confirming a Tweet that was pointed out to us) inside the newly reconciled laugh factory known as McGladrey: All McGladrey employees are getting a 3G iPad January 3rd. We found out in a big conference about our rebranding and RSM buyout. It's still technically "company owned" so it's probably […]
Because the PCAOB is giving you until December 14th to make your views known.
“One cannot talk about audit quality without discussing independence, skepticism and objectivity. Any serious discussion of these qualities must take into account the fundamental conflict of the audit client paying the auditor,” said PCAOB Chairman James R. Doty.
“The reason to consider auditor term limits is that they may reduce the pressure auditors face to develop and protect long-term client relationships to the detriment of investors and our capital markets,” Chairman Doty added.
Don’t fret anti-rotaters, the Board did invite everyone to weigh in on the idea that they “should consider a rotation requirement only for audit tenures of more than 10 years or only for the largest issuer audits.”