VSCPA Does Not Support PCAOB's Audit Firm Proposal
The VSCPA has sent an email to the Public Company Accounting Oversight Board (PCAOB) offering comment on its Concept Release on Auditor Independence and Audit Firm Rotation.
At this time, the VSCPA does not support the proposed institution of mandatory audit firm rotation. The Society does not believe there is sufficient evidence to warrant the costs and risk of adoptions and believes that the proposal could have negative consequences, including a decrease in audit quality. The VSCPA also believes that other viable options, such as an enhanced peer review process, may better address failures in audit quality and the impairment of auditor independence.
The VSCPA does not believe that there is sufficient evidence that mandatory audit firm rotation will address the problems identified in the concept release.
LAST UPDATED 12/13/2011