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July 9, 2013

US Congress votes to ban mandatory audit rotation

The US House of Congress has voted through H.R. 1564: The Audit Integrity and Job Protection Act, by 321 votes to 62.

If made law, H.R. 1564 will amend the Sarbanes-Oxley Act of 2002 (SOX) by prohibiting the Public Company Accounting Oversight Board (PCAOB) from introducing mandatory audit rotation or from requiring public companies use specific auditors.

The Republicans were more strongly in favour of the Bill, with 211 votes for it and no votes against it, with 22 not voting, though the majority of Democrats also supported the Bill, with 110 votes for it versus 62 against, with 29 not voting.

The bi-partisan backed bill still needs to go through the Senate, which has a Democrat majority, and be signed off by the President before it becomes law.

Related links

Final votes results for H.R.1564: The Audit Integrity and Job Protection Act

PCAOB: Concept release on auditor independence and audit firm rotation

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