Does the rotation of auditors improve the quality of auditing Essay - 4

Does the rotation of auditors improve the quality of auditing - Essay congresswomanIt is worth mentioning that the role of audit rotation in improving the standards and the efficiencies of audit is duly considered as superstar of the major determinants of audit quality. It is strongly believed that longer tenure of an auditor links with lower quality of audit and in this context, it can be sustain that the rotation of auditors require to be taken into concern in order to enhance audit quality on the whole. In this present day context, misrepresentations and frauds have emerged intimately that eventually imposes extensive seismic disturbances upon audit quality. The misrepresentations along with the frauds have been arguably caused owing to the augmenting interests of the stakeholders and also the owners belonging to mixed business organisations. ... Discussing the Principle Need for Rotation of Auditors Impact on Auditors Independence It is kind of evident that the periodic ro tation of auditors plays a decisive role in enhancing the auditing quality of the client fraternity by a tidy extent. It can be apparently observed that the rotation of auditors can be conducted both internally and externally. The auditors rotation in both of these forms is duly considered to be unrivaled of the chief determinants of enhancing audit quality. This is owing to the reasons of preventing the auditors depending relation with the management team of the client organisations and differentiating betwixt the auditing attend conducted by non-capital market and capital market oriented corporations. In order to determine the impact of auditors rotation on the independence of the auditors, it can be affirmed that the sovereignty of the auditors the Great Compromiser much limited in the context of auditing due to the existence of a special trust tie-up prevailing between them and the management team of the client organisations. Thus, with this concern, it can be affirmed th at the independence of the auditors mostly rely upon the interrelation, which prevail between the auditors and the management team. Specially mentioning, the principle need for rotation of auditors impose considerable impact on auditors performances, making them perform both auditing along with consulting services and preserving the auditing process ethically, irrespective of having close interrelation with the management team of diverse organisations (Velte & Stiglbauer, 2012). Mitigation of Conflict of Interests Apart from render the principle need for rotation of auditors in limiting the independency of the auditors, it can also be affirmed that