As I write this piece I would have been a partner now for nineteen years now, with
additional years in public accounting before becoming partner, so it goes to say I would have
some experience and knowledge of regulations before and after SOX was passed. The
changes to my professional life would fall into two categories: adjustments to previous
practices and new changes resulting from the law and the PCAOB oversight.
Firstly, certain non-audit services are prohibited by section 201, or offering audit and
consulting services to the same company. As we read Arthur Anderson was collecting
millions in both advisory and audit fees. As a partner I was forced to seek out additional
clients to either or provide audit services or consulting because of the regulation.
Secondly, (section 203) requires the partner in charge of an audit engagement must be
rotated every five years. Audit partner rotation supports auditor independence and is an
important component of quality control for U.S. accounting firms. This regulation works as
