Audit committees want five-year rotation extended
The majority of audit committees in the UK want to extend the five-year rotation period for their lead audit partner, according to a survey by the Institute of Chartered Accountants in England and Wales (ICAEW).
The ICAEW survey found that 78% of respondents wanted their lead audit partner to stay for longer, or to at least have the flexibility for this to be an option.
Over half of respondents expressed interest in a seven-year rotation period, while 24% opted to retain the five-year period but be able to extend it to seven if required. Just over 20% are happy with the system as it currently is.
Mandatory rotation rules were introduced after the Enron scandal, with regulators concerned that if audit partners grew too close to clients their objectivity could become compromised.
