Mandatory Rotations of Auditors

[smraza]

According to Code of Corporate Governance the auditors will be changed after a certain period, then how the firms are going to manage it ?
can anybody comment on this ????

S M R

[geo]

Raza,

Most of the big firms have partners who also have firms, so what will happen is that for one year a sole firm might do the audit and then again to the parent firm in next year.

And another possibilty is that firms will interchange clients for a year and back again, its also possible that work is performed by the same firm but the report contains the name of another auditor.

They also have a choice of joint audits, changing the joint auditor.

The most likely is Babaz of ICAP wont let it happen.

Whatever the case nothing is being feared by the firms.

[smraza]

What do u think geo ?, doesnt it creates a sort of marketing among the firms ???????

S M R

[geo]

I think IF any such regulation is implemented in its true sense, most of the firms mission statement will contain.."GIVE & TAKE"

[smraza]

<img src=icon_smile_big.gif border=0 align=middle> Well said geo

S M R

[Paki]

if there's anything to gain or lose in this, the major chunk of that rests with the major firms the 4 or 5 firms (so major manipulation is gonna happen that's gonna happen over there) for the small firms, its their test if they could turn this 'sneak a peek' view into a hole big enough to be the frontliners. I hope they do.

Me rulz