On June 2, 2011, the Public Company Accounting Oversight Board (PCAOB) Chairman, James Doty, spoke before the 30th Annual SEC and Financial Reporting Institute Conference about challenges in improving audit quality and confidence. He called for a broad public policy debate to enhance the relevance, credibility and transparency of the audit, focusing on the following areas:
- the auditor's reporting model
- auditor independence
- providing more context for audit committees
- audit transparency
Of particular interest were Mr. Doty's remarks regarding possible regulatory limits on auditor tenure. He stated that the PCAOB is prepared to consider all possible methods of addressing the problem of audit quality, including mandatory audit firm rotation. The PCAOB plans to issue a concept release to explore whether there are other approaches it could take that could more systematically insulate auditors.