Call grows for auditor rotation
The chief of a leading investment consultancy has joined the growing chorus of industry leaders calling for compulsory auditor rotation.
Calls for companies to rotate their auditors to avoid cosy relationships developing are mounting as the threads leading to Enron’s collapse unravel.
‘The Enron crisis is an opportunity for putting independent audit on much firmer foundation,’ Alan MacDougall, managing director of Pirc, pension investment research consultants, told the ,FT.
Under a broad review due to start in March, the Financial Services Authority will be looking at the possibility of auditor rotation. The fledgling Accountancy Foundation, the profession’s independent watchdog, is also reviewing the role of auditors.