Toothless Term Limits Won't Improve Auditing

The idea of making companies switch audit firms every so often is a good one, except when it isn't. And here is one of those times.

The European Union unveiled a new draftagreement with its member states that would force financial institutions and publicly traded companies to occasionally rotate their outside auditors. The objective is to keep auditors and their clients from getting too cozy with each other. The problem is it still gives them a very long time to remain cozy with each other, sometimes as long as a generation.