A Congressional hearing set for this Wednesday, March 28, examining pending proposals and emerging issues in accounting and financial reporting, is expected to address, among other things, the PCAOBs' current consideration of whether to propose a requirement for mandatory audit firm rotation. The hearing is being convened by the House Financial Services Committee, Subcommittee on Capital Markets and Government Sponsored Enterprises.
Panelists at the hearing represent a virtual who's who of accounting and auditing standard-setting, and a second panel at the hearing includes leaders from constituences directed impacted by and/or required to implement standards of the SEC, FASB, PCAOB and GASB. The second panel includes representatives of FEI, the AICPA, US Chamber of Commerce, and a leading academic.
This week's Congressional hearing on accounting and auditing comes on the heels of two days of hearings conducted by the PCAOB last week on consideration of the pros and cons of the concept of a potential mandatory auditor rotation requirement as one possible way to enhance auditor independence, objectivity and skepticism.