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FRC Ethical Standard: Auditor rotation for public interest and other listed entities

The FRC Ethical Standard (2016) (ES) provides guidance on long association with engagements and with entities relevant to engagements (often referred to as auditor rotation. How do these requirements differ for public interest entities (PIEs) and other listed entities that are not PIEs?

Issued: August 2017
Last reviewed: August 2017

The Companies Act 2006 (sections 487 and 489) sets legal requirements for audit firm rotation in relation to public interest and other listed entities and in turn stems from the Article 17 of the EU Audit Regulation. The FRC guidance in paragraphs 3.11-3.23 of the Ethical Standard sets the requirements for rotation for personnel within the audit firm and includes specific restrictions that do not apply to non-public interest or other listed entities.