PCAOB2011: Independence Relationship Between Auditor & Client- Audit Firm Rotation
Topic:“In August of 2011, the PCAOB issued the Concept Release to generate public opinion onefficient and effective vehicles for improvement in the independence relationship betweenauditor and client (PCAOB 2011). Through the release, the PCAOB requested comment onstrengthening the independence relationship between auditor and client via specific questionsrelated to audit firm rotation, as well as viable alternatives to audit firm rotation.”
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Task:
Based on relevant academic research and professional evidence to date, briefly outline andexplain the key changes to audit firm rotation and alternative suggestions to improve auditorindependence. Explain the reasons/motivation for the changes and critique whether thesechanges are likely to achieve their aim/s. Outline the likely impact of the audit firm rotationon auditor independence.
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