PCAOB Continues Rotation Discussion

State Board Report

February 2012

The Public Company Accounting Oversight Board will hold a public meeting on March 21-22, 2012, in Washington, DC, to
obtain further input on ways to enhance auditor independence, objectivity and professional skepticism, including discussion of mandatory rotation for audit firms. In December, NASBA submitted comments on the PCAOB’s earlier concept release on this topic, at which time it urged the PCAOB to consider other measures to address professional skepticism (see sbr 1/12).

“We received many thoughtful, reasoned comments and this public meeting is intended to further explore these issues,” PCAOB Chairman James R. Doty explained. “Independence, objectivity and professional skepticism form the foundation for investor confidence in the integrity of the audit, and our inspections have made clear that improvement is needed in these areas.”

The meeting will be available via Webcast through the PCAOB website.