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August 17, 2007

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George Weinbaum

When I was a wee young CPA, about 30 years ago, I favored mandatory auditor rotation. No longer. Replacing one Big Four with another will accomplish nothing. Bad audits substitute for good ones, ergo raise the cost of bad audits by repealing 1995's Litigation Reform Act and ending the "privity defense" for CPAs by law.

Also, end the "we're one firm worldwide, except when we get sued nonsense". If you call yourself PwC in the Phillipines, you should be able to get sued for PwC's US actions and vice versa. Auditor rotation within the Big Four will mean a partner within one Big Four firm covering up for his Big Four predecesor's mistakes and and partners doing the same for each other. After all wouldn't PwC do the same for D&T if it suceeded D&T on an audit?

Think about it.

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