Mandatory Audit Firm Rotation

Mandatory Audit Firm Rotation

 

Paper instructions:
Discuss the current auditor independence requirements.

Following the Enron debacle there has been some discussion by policy makers (especially in Congress) of mandatory auditor rotation. The idea is that rather than allowing companies to retain the same auditor forever, companies would be required to change auditors every (say) seven years.

Discuss the pros and cons of mandatory audit firm rotation.

What is your point of view on this topic.
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