Doty Takes Aim at Auditors' Controls Testing and Says Mandatory Rotation Could be Difficult

photo source:  SOXRight

 
Internal accounting controls are not being properly tested by auditors, according to James Doty, chairman of the Public Company Accounting Oversight Board. Instead, he said, "some auditors are just taking the business process that the company has put in place as a control." Internal controls were a chief change mandated by the Sarbanes-Oxley Act. Doty also said recently that a PCAOB proposal mandating term limits for audit firms could be difficult to implement. "I recognize now that audit firm rotation presents considerable operational challenges," he said.
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Source: Reuters