PCAOB to Host Public Meeting on Auditor Independence and Audit Firm Rotation in San Francisco

The Public Company Accounting Oversight Board announced today that it will host its second public meeting to discuss ways to enhance auditor independence, objectivity, and professional skepticism, including through mandatory rotation, or term limits, for audit firms.

The meeting will be held Thursday, June 28, 2012, in San Francisco, CA.

The Board issued a concept release on Aug. 16, 2011, that invited commenters to discuss measures that might meaningfully enhance auditor independence, objectivity and professional skepticism.

The release included a number of questions related to mandatory audit firm term limits, such as whether the PCAOB should consider a firm rotation requirement for audit tenures of more than 10 years, or for the largest issuer audits only.

"This is a complex subject that raises important issues about how to fulfill the audit's core purpose," said PCAOB Chairman James R. Doty. "I look forward to building upon the constructive discussion started with the comments received on the PCAOB concept release and the public meeting in Washington earlier this year."

The first public meeting on auditor independence and audit firm rotation was held March 21-22, 2012 in Washington, D.C., and a webcast can be viewed on the PCAOB website.

The San Francisco meeting will consist of panel discussions, during which panelists will be invited to present their views on the matters raised in the concept release and board members will have the opportunity to ask panelists follow-up questions. The schedule and list of panelists will be made available closer to the meeting date.

The meeting will be held at the Hilton San Francisco Financial District, 750 Kearny Street, San Francisco, CA 94108. It will be open to the public, and also available via webcast on the PCAOB website.