In the News: Auditor Term Limits, IFRS, Technology
Jesse Hamilton of Bloomberg reports that the Public Company Accounting Oversight Board voted 5-0 earlier this week to open a public comment period on the idea of establishing term limits for auditors. Proponents said such restrictions may eliminate inappropriate company influence on long-term auditors. The board’s “concept release” would limit the number of consecutive years that an auditor could work for a client. It would combat “the pressure auditors face to develop and protect long-term client relationships to the detriment of investors,” PCAOB Chairman James Doty said. However, the board said it’s open to alternative ideas that would foster auditor independence, as board members expressed reservations. “I have serious doubts that mandatory rotation is a practical or cost-effective way of strengthening independence,” board member Daniel L. Goelzer said.
David Katz covers the recent AICPA comment letter to the SEC, urging them to allow IFRS adoption for public companies, in CFO.com. In the letter, Paul Stahlin, CPA, AICPA chairman, and Barry Melancon, CPA, AICPA president and CEO stated their agreement with a goal outlined in a May 26 SEC staff paper, to empower a U.S. company that is compliant with generally accepted accounting principles “to be able to represent that it is compliant with IFRS as issued by the IASB.”
The Times Picayune quoted Mark Koziel, CPA, and Heidi Brundage, CPA, of the AICPA in an article about the ways in which technological advances are shaping the accounting profession. As the transition from paper receipts to all digitized financial information is rapidly occurring, an accountant’s job is changing dramatically and increasingly relies on an understanding of technology and the ability to think outside of the box. "The transition is happening now, and we can choose to either hide from it or use it to our advantage," said Koziel.
If you come across a recent article of note about the profession, please let me know in the comments section or send me an email.