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CPA public commenter warns committee that private‑equity 'rollups' can hollow out attest firms
Summary
A CPA who spoke during public comment told the Oregon Board of Accountancy Laws & Rules Committee that private‑equity practice structures can leave attest firms with a single registered CPA while staff and operations are controlled in separate entities, raising concerns about peer review and who accepts responsibility for audits.
John Howell, a CPA who identified himself as a member of the public, told the Oregon Board of Accountancy Laws & Rules Committee that recent private‑equity rollups have created firm structures where the attest entity lists only one CPA while the personnel performing the work are held in other entities. “We were approached by a group... that is one of these private equity practice structures that are rolling up small firms,” Howell said, describing cases where legacy entities remain on paper for peer‑review purposes while most staff are assigned elsewhere.
Howell said the arrangement can make it unclear who is responsible for audit quality and record‑keeping: “We always want to know when something doesn't work in audit… who is responsible and who accepts responsibility.” Committee members responded that the concern is serious and that the LRC will dig further into peer‑review implications. Chair Jason Orm thanked Howell for raising the issue and said the committee plans follow‑up work on the white paper and peer‑review considerations.
