By this time, your annual audit is either complete or winding down. You have documented the
But this year may be different. One change being discussed may alter the process, in the next twelve months –
In August 2011, the Public Company
As of March 24, 636 letters were received, i.e. some for the proposal and some against. The comment period will stay open until April 22, 2012.
This proposal represents a more stringent requirement than the one imposed by the
The primary objection, for those that oppose the PCAOB proposal, are that as you shorten the time of engagement, you lose the expected efficiencies and cost savings associated with a long-standing relationship.
According to a study entitled “Audit Partner Rotation: An Analysis of Benefits and Costs” audit partners reported that it required two-to-three years before client familiarity was established. Based on this research, audit clients only receive the benefits of an established audit relationship for two years, prior to a partner rotation. At this early stage, Firm Rotation research is spotty.
Even though these actions technically are imposed only on public companies, it would be prudent for a
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