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House Passes Measure to Prevent Mandatory Auditor Rotation

On July 8, the U.S. House of Representatives voted 321-62 on a measure to amend Sarbanes-Oxley Act to prohibit the Public Company Accounting Oversight Board from requiring companies to switch auditors. The PCAOB, which regulates auditors, has proposed auditor rotation since 2011 to ensure auditors’ impartiality. Proponents of the measure state that mandatory auditor rotation will raise audit costs without improving audit quality. It’s not clear if the U.S. Senate will take up the measure for a vote. To read the article, click here.