FRC Ethical Standard: What are the rules on auditor rotation?
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).
Issued: August 2017
Last reviewed: August 2017
Long association is recognised as a potential threat to the independence and objectivity of the auditor. In some circumstances this threat can be managed by putting in place appropriate safeguards and disclosure. In other cases it would be inappropriate for the auditors to continue the audit engagement. Who must rotate and when?