After the Bell: The frightening issues of compulsory audit firm rotation
In SA, we’re only too familiar with accounting scandals. As a remedy, IRBA decided companies must rotate their auditors every few years. But then this week, amazingly, the Supreme Court of Appeal suddenly scrapped the requirement in SA. Counterarguments include that if you change auditors often, then audit reports will be of lower quality and more expensive. Another measure is to keep audit firms but change the audit partners responsible for the audit.