Audit rotatio

The Financial Reporting Council (FRC) wants to see the International Ethics Standards Board for Accountants (IESBA) strengthen requirements in its code of ethics for changes of personnel on audit engagements to address the lack of trust in auditor independence and scrutiny, and enhance confidence in the overall effectiveness and quality of audit say Harris & Co accountants Northampton #accountantsnorthampton

The regulator’s recommendations are contained in its response to the IESBA consultation on its Exposure Draft – Long association of personnel with an audit or assurance client.

The IESBA proposals include revisions to the Code of Ethics for Professional Accountants to allow key audit partners to remain on an audit for up to seven years, with a potential extension in some instances to eight years.