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20 October 2004 — News

Mandatory Rotation of Audit Firms Endangers Audit Quality

Mandatory Rotation of Audit Firms Endangers Audit Quality

 

October 2004

New FEE Study reviews reports by governments, regulatory bodies and academics on subject of mandatory rotation. It sets out the main arguments made in these reports in favour of such rotation as well as against. The overwhelming majority of studies found that the mandatory (i.e. forced) rotation of audit firms inadvertently threatens audit quality.