On July 8, the Journal of Accountancy reported “the U.S. House of Representatives approved a bipartisan bill that would prohibit the PCAOB from requiring mandatory audit firm rotation for public companies.

The bill, sponsored by Reps. Robert Hurt, R-Va., and Gregory Meeks, D-N.Y., was introduced on April 15. It would amend the Sarbanes-Oxley Act of 2002 to prohibit the PCAOB from requiring public companies to use specific auditors or requiring the use of different auditors on a rotating basis.

Representatives voted 321 to 62 in favor of the bill, H.R. 1564, the Audit Integrity and Job Protection Act. The bill would have to be approved by the Senate, which has not taken up the issue, and signed by the president to become law.

The AICPA and numerous other prominent business organizations also signed a letter to members of the House Financial Services Committee in support of the bill.

An AICPA comment letter on the PCAOB’s concept release opposed mandatory audit firm rotation, saying it carries significant costs and may have unintended consequences that could hinder audit quality.”

If you have questions about this or any other matters, contact your Warren Averett Pender Newkirk partner, or any member of our SEC Practice Division at (813) 229-2321.