Audit Partner Rotation - Issue Brief

Audit Partner Rotation - Issue Brief In receipt to the wave of corporate crises, the Sarbanes-Oxley enactment includes a provision regarding needful study cooperator rotation for squiffys auditing exoteric companies. This should not be confused with audit devoted rotation and it is important to lick the distinction. The Act requires the lead audit partner and audit appraise partner (or concurring reviewer) to be rotated every tail fin years on all public company audits. The Act requires a concurring review of all audits of issuers (as defined in the Act). The focus of this document is audit partner rotation. However, it also discusses the hatful in which audit partner rotation can be tantamount to audit firm rotation. A Reasoned Approach A reasoned, logical approach should be taken in considering sublime mandatory audit partner rotation at the area level. On January 28, 2003 the SEC adopted rules to effectuate the statutory sine qua non of audit partner rotation found in Sec. 203 of the Sarbanes-Oxley Act. In addition to the five-year rotation requirement of the lead and concurring audit partners, the rules also mandate a five-year timeout period after rotation.

The rules, as adopted, specify that certain other significant audit partners result be subject to a seven-year rotation requirement with a two-year timeout period. The rule provides an alternative for firms with fewer than five public audit clients and fewer than ten partners. The alternative requires the Public attach to Accounting Oversight Board (PCAOB) to review all of the firms engagements subject to the rule at least in one case every three years. Further, the Sarbanes-Oxley Act requires the Government Accounting topographic point (GAO) to conduct a study of the effectiveness and implications of audit firm rotation. In a reasoned approach at the reconcile level, it would not be logical to attempt to replicate what has already been done at the federal level regarding audit partner rotation. It would also be logical to... If you want to get a full essay, order it on our website: Orderessay

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