Rep. Ed Perlmutter calls for ensuring independence of corporate auditing

Congressman Ed Perlmutter forcibly defended the concept of independent auditing today at a House Financial Services Capital Markets subcommittee hearing.
The subcommittee is considering a draft bill by Representative Michael Fitzpatrick, which would prohibit the federal agency charged with overseeing auditor independence, from requiring larger corporations to periodically change the outside auditing firms they hire to examine their books.
Proponents of auditor rotation argue that it helps ensure that the relationship between a company and its auditor doesn't become too cozy, and encourages a healthy auditor skepticism which enhances investor protection.
Perlmutter argues that gains made by a rebounding stock market are better conserved by regulations which help ensure the integrity and independence of corporate auditing.

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