An Evaluation of Mandatory Audit Firm Rotation in South Africa
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Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

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asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
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doi
open access

Published: 17 October 2018

An Evaluation of Mandatory Audit Firm Rotation in South Africa

Arnold Rademeyer, Danie Schutte

North-West University, South Africa

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

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doi

10.31014/aior.1992.01.04.37

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Abstract

Following on recent corporate failures, various initiatives are introduced to restore confidence in the audit function. In this regard, the Independent Regulatory Board for Auditors of South Africa announced its plans to pursue mandatory audit firm rotation for the audits of public interest entities. The motivation for this decision was firstly due to concerns raised about independence issues as well as a lack of transformation and competition in the South African environment. This article examines the legal and practical implications of the announcement to enforce companies to appoint auditors for a limited period of time. The article contributes to the scarce literature on the audit profession and in particular issues pertaining to the independence of auditors. Against the background of the global business world and the existence of multinational companies, the results are also relevant in an international context.

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