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A rotation too far
Serge Corel, FD at Mondial, the support services group, makes an interesting point in a recent interview for Accountancy Age.
It's about that thorny old issue of audit firm rotation. Of course rotation is not a favoured option among most auditors here in the UK - in fact most treat it with derision - but it has been deemed a topic for review by the Financial Reporting Council.
Corel, it seems, has a soft spot for it:
After a certain period of time your relationship with your auditor can become a little bit too comfortable. If it was compulsory to change auditors, it would force you to put everything on the table and look at it with fresh pair of eyes.
I think that when an auditor has worked with a company for a number of years it does not always give it the same attention that is could because it is comfortable,’ he says.
Couldn't help but mischeviously look up and find that KPMG is Mondial's auditor and that Ian Sutcliffe signed off the last set of accounts in March this year.
KPMG have been doing the audit a good few years but Corel does not elaborate on when it might be appropriate to dump your current auditor to find a new one. Mr Sutcliffe, watch out, your time may be up.
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Posted by :vigram | June 16, 2008 12:55 PM