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Audit Rotation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Audit Rotation

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by Ken Garrett.
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  • Author
    Posts
  • August 1, 2016 at 8:05 am #330554
    CKLP
    Participant
    • Topics: 20
    • Replies: 27
    • ☆

    Sir,
    Could you explain the audit rotation, emphasizing on audit rotation periods and it purpose.

    August 1, 2016 at 6:46 pm #330724
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10589
    • ☆☆☆☆☆

    It is to reduce the familiarity threat.

    Broadly, for public interest entities the EUK requires audit firms to change, or at least companies to put the audit out to tender at least,every 10 years.

    You can find fuller details here:

    https://www.pwc.com/gx/en/audit-services/publications/assets/pwc-fact-sheet-1-summary-of-eu-audit-reform-requirements-relating-to-mfr-feb-2015.pdf

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