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  • Mandatory auditor rotation is designed to address a potential conflict of interest between a public company and its auditor. Because an auditor is hired and paid by the public company it audits, the auditor's desire to maintain a good relationship with its client could conflict with its duty to rigorously question the client's financial statements.

    "An Intermediate Approach to the Auditor Rotation Issue" by Robert Pozen, www.huffingtonpost.com. April 9, 2012.
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