Critics say the Sarbox clause requiring lead partners to change within five years puts pressure on the smallest audit firms, and Cordovano and Honeck says it's hurt them twice.
Alan Rappeport, CFO.com | US
June 27, 2007
Merger doesn't sound too bad, but it decreases the opportunity for entry into the market. Another option for small accounting firms that have to abide by the Rotation rule is to ensure the practice has at least 4 audit partners that share responsibility as 1st level reviewer and/or 2nd level reviewer.
Posted by Bill Storey | June 28, 2007 10:23 am
Despite the negative side of it,the rotation rule may result in the small accounting firms to think about merging their practices with other small firms.
Posted by Wael Bibi | June 28, 2007 01:24 am© CFO Publishing Corporation 2009. All rights reserved.