A scarcely resourced topic, “Governance Considerations for Replacing External Auditors” from Debevoise & Plimpton outlines key governance, independence, disclosure, and capital markets considerations for companies navigating an auditor transition. The memo highlights the audit committee’s central role in appointing and overseeing the auditor, the need to evaluate independence under SEC rules, and detailed disclosure obligations—including Form 8-K reporting and related requirements. It also notes potential implications for capital markets transactions and emphasizes the importance of early planning and coordination among the audit committee, management, counsel, and both outgoing and incoming auditors.
This post first appeared in the weekly Society Alert!