By Robert Herz - October 25, 2011
The PCAOB has recently begun assessing the potential benefits, costs and unintended consequences of requiring periodic rotation of auditors by SEC registrants. Advocates of term limits believe rotation could address the conflict of the auditor being paid by the auditee, but the potential for additional costs and disruption to companies are also important factors. Inside, Columnist Robert Herz assesses both sides of the issue.