The US Public Company Accounting Oversight
Board (PCAOB) has announced it is to hold a second public meeting
to discuss ways to enhance auditor independence, objectivity, and
professional skepticism, including through mandatory rotation, or
term limits, for audit firms.
The second meeting will be held 28 June in San
The PCAOB already held a meeting discussing
these measures in March, where most stakeholders widely opposed
mandatory audit firm rotation. However there was more support for
measures such as capping the maximum time that a firm can use on
audit firm and adopting the comply and explain principal.
The US Congress has also threatened from
banning PCAOB from introducing mandatory rotation.
PCAOB chairman James Doty said this is a
complex subject that raises important issues about how to fulfill
the audit’s core purpose.
“I look forward to building upon the
constructive discussion started with the comments received on the
PCAOB concept release and the public meeting in Washington earlier
this year,” he said.