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January 23, 2012

Comments

Scott Green

Another interesting post, Tom. This is a topic that can fuel a life-time of research and study, but I leave a couple remarks.

Besides through auditor rotation, auditor objectivity is supported by clear auditing standards and accounting standards and checklists and other documentation that ensure consistent treatment of similar situations.

Even referring to prior year workpapers helps an auditor maintain consistency, although prior year workpapers are also well known as a trap for the unwary and inexperienced.

James Ulvog

I'm a sole-practitioner CPA who provides audits and reviews. I don't think that mandatory auditor rotation is a good idea. However, the author's experience in grading papers is a very unsettling illustration of the halo effect.

Thanks for the post. I will have to ponder this some more.

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