Some of the problems the regulator sees with audits are a lack of auditor professional skepticism and an inappropriate focus on building and maintaining the client relationship with the company management rather than on performing a public duty for shareholders.

FORBES: Auditor Rotation Proposal Just More Spin

The independent external auditor is a licensed professional who works for a public accounting firm and performs an audit of the financial statements of a company, government, individual, or any other legal entity or organization.

FORBES: Crisis? What Crisis? Don't Blame The Accounting

Last week the FDIC filed suit against Colonial Bank auditor PwC, and internal audit co-source vendor Crowe Horwath, for professional malpractice and breach of contract.

FORBES: A Tale of Two Lawsuits -- PricewaterhouseCoopers and Colonial Bank

Mr Thomas has suggested that the auditor general should be able to continue to employ his own staff and procure his own professional services.

BBC: Public Audit Bill statement