Debate over auditor rotation intensifies
NEW YORK – Rotating external auditors will help reduce the risk of corporate fraud perpetuated by collusion of senior management and auditors, according to Sherron Watkins, the whistleblower who exposed Enron’s accounting scandal which led to the energy giant’s collapse.
She admits that the Sarbanes-Oxley Act of 2002 has succeeded in putting some best practices into law, including enabling outside board members to meet without management presence.
"All these are very important developments, but I think that mandatory audit firm rotation will be better; let them rotate every five years. That will keep them on their toes because they will know that another
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