GAO report says mandatory auditor rotation for SEC companies may not be efficient; loss of knowledge and additional costs outweigh benefits.
The GAO believes several years of experience with implementation of the Sarbanes-Oxley Act's reforms are needed before the full effect of the Act's requirements can be assessed. It also suggests that audit committees, with their increased responsibilities under the Act, can play an important role in ensuring auditor independence.
For a copy of the report, visit the GAO's Web site at:
www.gao.gov (see GAO Reports)
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|Title Annotation:||regulatory matters; General Accounting Office, Securities and Exchange Commission|
|Article Type:||Brief Article|
|Date:||Jan 1, 2004|
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