THE AUDIT ROTATION RISK

摘要

The European Commission is wrong to suggest mandatory audit firm rotation would stimulate competition. When the US General Accounting Office looked at the issue in its Required Study on the Potential Effects of Mandatory Audit Firm Rotation, it reviewed the potential effects of requiring rotation of the public accounting firms that audited public companies registered with the Securities and Exchange Commission. It found that nearly all of the Fortune 1000 (and their audit committee chairs) believed that the costs of mandatory audit firm rotation would exceed the benefits.