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AC7105 Audit And Assurance

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  • Course Code: AC7105
  • University: University Of Gloucestershire
  • Country: United Kingdom

Question:

In recent years, regulators around the World have considered the topic of auditor independence and whether independence can be strengthened through legislatively requiring rotation of an Audit Partner or an Audit Firm.

For FTSE 350 companies, the UK’s Corporate Governance Code mandates rotation of an Audit Firm.

In Australia, Section 324 of the Corporations Act mandates rotation of an Auditor Partner (for Public Interest Entities).

Please compare the requirements relevant to audit rotation of the UK Corporate Governance Code and the Australian Corporations Act, and consider and comment on the advantages and disadvantages of these two different approaches in strengthening auditor independence and possibly the quality of the audit.

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