Regular audit tendering and rotation is now a reality. During our recent series of ACI Technical Updates we took the opportunity to explore the perceived risks and benefits of changing the external auditor with around 150 audit committee members.
The greatest perceived benefit of ‘new’ auditors is (by far) the ‘provision of fresh insights into the business’ (87% of respondents). ‘A new perspective on existing accounting judgements’ was the second most cited benefit (45%) followed by ‘increased audit quality’ (24%) and ‘greater sector experience’ (21%). The most frequently cited downside risks were the potential for ‘reduced understanding of the business’ (66%), ‘increased disruption of the business’ (46%); and ‘a disruptive change of view on existing accounting treatments’ (42%).