The European Commission proposed rules to require public companies to change their auditors every six years. It also requires audit firms to separate their auditing and consulting functions.

This has a significant impact on not only European companies but US multinationals. It is even more significant for the biggest auditing firms of KPMG, Earnst & Young, KPMG, PricewarehouseCoopers, and Deloitte.

The goal is to improve competition in the audit market which has seen significant consolidation over the last three decades. It will also help to eliminate un-healthy relationships with companies and their auditors. The problem is that there are significant cost when bringing in a new auditor.

This is still just a proposal but something that is being considered in the US as well.