PracticeAuditAudit partner rotation questioned

Audit partner rotation questioned

Survey: audit committees want 7-year rotation period

Most audit committees in the UK would like to extend the five-year rotation
period for their lead audit partner.

The ICAEW surveyed 121 FTSE 350 audit committee chairs and found that 78.5%
of respondents wanted to hang onto lead audit partners for longer, or at least
have the flexibility to do so.

Just over half expressed interest in a seven-year rotation period, while 24%
opted to retain the five-year period but be able to extend it to seven if
required. 21.5% said they would maintain the five-year period.

Mandatory rotation rules were introduced in line with the Sarbanes-Oxley
legislation in the United States following the Enron scandal, which also bought
down the company’s auditors Arthur Andersen.

Regulators worried that if audit partners grew too close to clients over
time, it might cloud the auditors judgement if problems emerged.

Related Articles

Is predictive analytics the end of the annual audit?

Audit Is predictive analytics the end of the annual audit?

3d Martin Herron, MHA MacIntyre Hudson
Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

1w Emma Smith, Managing Editor
PCAOB sanctions former Deloitte Turkey CEOs over altered documents

Audit PCAOB sanctions former Deloitte Turkey CEOs over altered documents

2w Alia Shoaib, Reporter
KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

1m Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

1m Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

2m Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

2m Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

3m Alia Shoaib, Reporter