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Auditors Fight Back Against New US Rules

Auditors Fight Back Against New US Rules

by Starling Insights

Starling Insights Editorial Board

Sep 05, 2024

Observations

US audit firms are fighting back against new rules proposed by the Public Company Accounting Oversight Board (PCAOB) that mandate the establishment of external oversight bodies within the firms.

This rule is part of a broader effort by the PCAOB to update decades-old quality control standards in the industry, aiming to enhance trust in public markets following the Enron scandal. Some firms, like PwC and BDO, already incorporate similar advisory councils into their governance structures. Despite this, they and other large firms, alongside the Center for Audit Quality, are pushing back against the formalization of independent oversight roles.

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