Five Years, Then Rotate

Section 203 of the Sarbanes-Oxley Act limits how long the lead audit partner may stay with one client. Under the SEC rules that apply it, an accounting firm is not independent if its lead audit partner or concurring partner has performed audit services for the same client “for more than five consecutive fiscal years.”

The partner must then take a five-year “time-out” before returning to the same client.

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