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It must also be noted that in a random sample of company annual reports and proxy notices received in the Treasurer's Office, almost universally the major corporations showed evidence of long relationships with their audit firm. It is not uncommon to see the statement "ABC has been the Corporation's auditor since 1934."

A concurrent study of the applicable literature with respect to auditing guidelines for colleges, universities and museums provides no guidance on the subject of rotating external audit firms. This may well be because the writers tend to be practicing CPA's and partners of the major firms. Neither do the major organizations concerned with accounting matters. Sources checked included the Financial Accounting Standards Board, the American Institute of Certified Public Accountants, the National Association of College and University Business Officers, and the National League of Cities. These sources do emphasize the need to change personnel assigned to a specific client on a regular basis. 

[[underlined]] The Museum Accounting Handbook [[/underlined]] prepared for the American Association of Museums by two partners of Price Waterhouse in consultation with museum professionals including the Hirshhorn's Stephen E. Weil emphasizes the distance nature of museum accounting. The American Institute of Certified Public Accountants had published industry audit guides for use in examining and reporting on the financial statements of three types of not-for-profit organizations - hospitals, colleges and universities, and voluntary health and welfare organizations. [[underlined]] The Museum Accounting Handbook [[/underlined]], reprinted in 1985, remains the definitive work in its field. It offers no advice on audit firm rotation.

On the other hand, much has been written on a Federal accounting, specifically GAO. Likewise, there is a wealth of information on city, county and state accounting practices through related professional organizations of accountants. A survey of 120 entities in New York State is cited later in this paper.

[[underlined]] Detailed Findings [[/underlined]]

Having summarized the survey findings by type of entity, the detailed findings are perhaps best represented by first citing selected local examples known to the Committee, and then proceeding to the wider community of surveyed entities.

[[underlined]] Washington-based Organizations [[/underlined]]:

Calls to the Library of Congress and the U.S. Mint revealed that only internal audits are done. The Federal Reserve Bank, on the other hand, and for obvious reasons, issues an RPF every five years. The current auditor can submit a bid; the process provides a "chance for a fresh look, not specifically for creating a change."