Most CFOs Want Auditor Rotation
Nearly nine in 10 UK CFOs support the frequent rotation of auditors.
This is an approach supported in the European Commission’s green paper on audit and could lead to audit-only firms.
The research, by recruitment firm Robert Half, reveals that 82% of CFOs believe auditors should be rotated at least every three years.
Large and publicly listed companies are most in favour of changing auditor regularly and is a quicker rotation than the enforced nine-year service limit being debated by the Commission.
However, seven out of 10 CFOs think the Big Four do not wield undue influence on the market.
Ashley Whipman, director of Robert Half Management Resources, said: ‘It appears CFOs are happy to maintain the status quo Big Four of Deloitte, PwC, Ernst & Young and KPMG, theough they would like to see a far more regular rotation between these big players to ensure effective corporate governance.’
He added: ‘It appears that 66% of CFOs are currently not using their audit firm for consultancy or other non-audit work and are instead turning to other specialist firms to support them on specific projects. Indeed we’ve seen a significant increase in demand from CFOs looking for highly experienced finance professionals who are able to lead teams on an interim or project basis.’
- AJ BELL Replaces KPMG with BDO as its New External Auditor
- AIM-listed Mining Company GoldStone Switches Auditor
- New Study Reveals 55% of Public Believe Auditors’ could Prevent Company failures’
- FRC Hands KPMG a £5m Fine over Co-Operative Bank’s Audit Failings
- IAASB Consults on Simplifying Auditing Standards for Small Entities with Less Complexities
- Anglo American Replaces Deloitte with PwC as its External Auditor
- SEC uncovers $20m Accounting Fraud at Celadon Group