PCAOB Concept Release on Auditor Independence and Audit Firm Rotation

Last week, the Public Company Accounting Oversight Board (PCAOB) issued a concept release paper on auditor independence and audit firm rotation. The concept release requests input on ways auditor independence, objectivity, and professional skepticism could be enhanced and is primarily focused on the issue of mandatory audit firm rotation. 

Attached to the right is the latest edition of the US firm’s Defining Issues which provides an overview of the PCAOB’s release and is designed to help you stay informed on this important topic. 

This development in the US corresponds with active discussions and consultations on audit quality and the role of the auditor that have been ongoing in Europe.  Much of this discussion has been focused on the EU Commission’s Green Paper - Audit Policy: Lessons from the Crisis.

KPMG is fully committed to the goal of enhancing auditor independence, objectivity, and professional skepticism.  We will continue to be actively engaged with the PCAOB, CPAB, and other regulatory bodies to pursue actions that will improve audit quality and enhance market confidence in the independent audit.  We welcome your views on these important topics and will provide you with additional and ongoing information as this process evolves. 

Yours sincerely,

Peter W. Doyle
Canadian Managing Partner, Audit
KPMG LLP