House Passes Bill to Prohibit PCAOB from Requiring Mandatory Auditor Rotation | Practical Law

House Passes Bill to Prohibit PCAOB from Requiring Mandatory Auditor Rotation | Practical Law

The US House of Representatives passed a bill that would prevent the PCAOB from requiring public companies to change their independent auditor on a rotating basis.

House Passes Bill to Prohibit PCAOB from Requiring Mandatory Auditor Rotation

Practical Law Legal Update 4-534-0766 (Approx. 2 pages)

House Passes Bill to Prohibit PCAOB from Requiring Mandatory Auditor Rotation

by Practical Law Corporate & Securities
Published on 10 Jul 2013 • USA (National/Federal)
The US House of Representatives passed a bill that would prevent the PCAOB from requiring public companies to change their independent auditor on a rotating basis.
On July 8, 2013, the U.S. House of Representatives passed H.R. 1564, the Audit Integrity and Job Protection Act. This bill would amend the Sarbanes-Oxley Act of 2002 to:
  • Remove any authority for the Public Company Accounting Oversight Board to require public companies to use specific auditors or require mandatory auditor rotation.
  • Require the Comptroller General to conduct another study on the effects, including costs and benefits, of mandatory auditor rotation.
The bill now moves to the US Senate, where it has been referred to the Committee on Banking, Housing, and Urban Affairs for consideration.