It’s Back! PCAOB Chairman Floats Auditor Rotation Idea
Andy Burczyk, a regional attest practice leader at Mayer Hoffman McCann P.C., comments in Compliance Week on the long-standing debate the Public Company Accounting Oversight Board has on whether to impose term limits on audit firms’ engagements with public companies.
In the article, Andy explains the challenge term limits may have on cost and quality of audits performed for public companies. He provides an example of a global telecommunications company that has 15 Big 4 auditors working year-round on that one audit. He explains that if that company were to hire a new audit firm, those 15 auditors would be out of work (likely facing relocation) while 15 auditors from a new firm would have to be transferred in. “It’s hard for me to see how that would improve audit quality,” he says. “It would make audits more expensive, and it would make the auditing profession a lot less desirable.”